An increase in the demand for a product will cause the
A) demand for and prices of the resources used to produce the product to increase.
B) demand for and prices of the resources used to produce the product to decrease.
C) demand for and prices of the resources used to produce the product to remain unchanged.
D) price of the product to decrease.

Question

Quizplus · Accepted Answer

An increase in demand for a product typically leads to an increase in the demand for the resources needed to produce that product, which can also drive up the prices of those resources.

An Increase in the Demand for a Product Will Cause