Which of the following statements best illustrates the relationship between the market for products and the market for resources?
A)An increase in the price of cameras will decrease the demand for film.
B)As income rises,people demand relatively smaller amounts of food.
C)An increase in demand for textiles will increase the demand for textile workers.
D)An increase in the price of butter will cause more people to buy margarine.
E)A decrease in demand for tea will increase the demand for coffee.

Question

Quizplus · Accepted Answer

The statement "An increase in demand for textiles will increase the demand for textile workers" best illustrates the relationship between the market for products and the market for resources. When there is an increase in the demand for textiles, producers will need more resources, such as workers, to meet the demand. Therefore, an increase in the demand for products leads to an increase in the demand for the resources needed to produce those products. The other statements either describe relationships within the same market or are not relevant to the relationship between the markets for products and resources.

Which of the Following Statements Best Illustrates the Relationship Between