The demand for factor inputs:
A)depends upon the markets for the goods that the inputs are used to produce.
B)is referred to as imputed demand.
C)is independent of how much the inputs contribute to the value of the end product.
D)is generally constant across most factor markets.

Question

Quizplus · Accepted Answer

The demand for factor inputs is derived from the demand for the goods and services that these inputs help to produce. If the demand for the final product increases, the demand for the inputs used to produce that product will also increase.

The Demand for Factor Inputs