A decrease in the demand for a final product will cause
A) a decrease in demand for the resources used to produce the good.
B) an increase in demand for the resources used to produce the good.
C) firms to expand production of the good.
D) an increase in the supply of resources used to produce the good.

Question

Quizplus · Accepted Answer

If there is a decrease in the demand for a final product, firms will likely reduce production of the good. This means there will be less demand for the resources used to produce the good. As a result, the demand for these resources will also decrease.

A Decrease in the Demand for a Final Product Will