The demand for a resource is derived from the
A) price of the resource.
B) supply of the resource.
C) supply of substitute resources.
D) demand for the good or service that the resource is used to produce.
E) supply of complement resources.

Question

Quizplus · Accepted Answer

The demand for a resource is derived from the demand for the good or service that the resource is used to produce. As the demand for the final product increases, the demand for the resources needed to produce that product also increases. The price of the resource, supply of the resource, supply of substitute resources, and supply of complement resources may all have an impact on the demand for the resource, but ultimately it is the demand for the final product that drives the demand for the resource.

The Demand for a Resource Is Derived from the