If the supply curve remains constant, an outward shift in the demand curve for a commodity causes the price of factors used in its production to decline.

Question

Quizplus · Accepted Answer

An outward shift in the demand curve typically leads to an increase in the price of the commodity, which can increase the demand for factors of production, potentially raising their prices, not causing them to decline.

If the Supply Curve Remains Constant, an Outward Shift in the Demand