The demand for a resource will increase if the
A) price of the resource decreases.
B) supply of the resource decreases.
C) price of the product requiring this resource increases.
D) price of the product requiring this resource decreases.

Question

Quizplus · Accepted Answer

The demand for a resource will increase if the price of the product requiring the resource increases. This is because as the price of the product increases, producers are willing to pay more for the resource in order to increase their profits. This results in an increase in the demand for the resource. On the other hand, if the price of the product requiring the resource decreases, the demand for the resource would decrease because producers would be less willing to pay for it.

The Demand for a Resource Will Increase If the