Which would decrease a firm's demand for a particular resource?
A) A decrease in the productivity of the resource
B) A decrease in the price of the particular resource
C) An increase in the demand for the firm's product
D) An increase in the price of the product the resource produces

Question

Quizplus · Accepted Answer

A decrease in the productivity of a resource would make it less effective and efficient to use, thus reducing the firm's demand for the resource. The other choices would either have no effect on the firm's demand or increase it. B, because the decrease in price would make the resource more affordable, C, and D, because both an increase in demand for the firm's product and an increase in the price of the product would lead to higher demand for the resource that produces it.

Which Would Decrease a Firm's Demand for a Particular Resource