A shift in demand for a given factor of production will NOT occur if:
A)the price of that factor falls.
B)the productivity of that factor increases.
C)the productivity of that factor decreases.
D)there is a decrease in the price of a substitute factor.

Question

Quizplus · Accepted Answer

A shift in demand for a factor of production is influenced by changes in productivity or the price of substitute factors, not by changes in its own price. Changes in its own price move along the demand curve, not shift it.

A Shift in Demand for a Given Factor of Production