If the demand for a good increases,it is likely that the demand for the factors of production used as inputs will:
A)increase.
B)decrease.
C)stay the same.
D)None of these statements is true.

Question

Quizplus · Accepted Answer

If the demand for a good increases, firms will need to produce more of the good, which will require an increase in the use of inputs (factors of production). This will result in an increase in the demand for the factors of production such as labor, capital, and raw materials. Therefore, the demand for the factors of production used as inputs will increase.

If the Demand for a Good Increases,it Is Likely That