The demand for a resource rises as

Question

Quizplus · Accepted Answer

When the productivity of a resource rises, it becomes more efficient and valuable to use, therefore increasing demand. Additionally, if the prices of substitutable resources rise, there will be a higher demand for the resource with increased productivity. This is because it becomes relatively cheaper compared to its substitutes, making it a more cost-effective option. Therefore, the demand for a resource rises as its productivity rises and the relative prices of substitutable resources rise.

The Demand for a Resource Rises as