A change in the demand for a resource can be caused by which of the following?
A) a change in the demand for the final product that uses the resource as a factor of production
B) a change in the productivity of the resource
C) a change in the price of other resources that could be used as substitutes for the resource in question
D) all of the above

Question

Quizplus · Accepted Answer

A change in the demand for a resource can be caused by any of the factors listed in options A, B, and C. A change in the demand for the final product that uses the resource as a factor of production will affect the demand for the resource. A change in the productivity of the resource will affect the cost of producing the final product, which in turn will affect the demand for the resource. A change in the price of other resources that could be used as substitutes for the resource in question will also affect the demand for the resource. Therefore, all of the above factors can cause a change in the demand for a resource.

A Change in the Demand for a Resource Can Be