If an increase in the use of one factor of production lowers the demand for the other, the two factors are:
A) normal factors of production.
B) substitute factors of production.
C) inferior factors of production.
D) complementary factors of production.

Question

Quizplus · Accepted Answer

When an increase in the use of one factor of production lowers the demand for the other factor, it indicates that the two factors are substitutes for each other. This is because an increase in the use of one factor leads to a decrease in the use of the other factor, implying that they can be used interchangeably to some extent. Thus, the best choice is B - substitute factors of production.

If an Increase in the Use of One Factor of Production