The demand for a resource will increase if the:
A) price of the resource increases.
B) quantity of the resource decreases.
C) price of the output the firm is producing increases.
D) price of the output the firm is producing decreases.

Question

Quizplus · Accepted Answer

If the price of the output that a firm is producing increases, the firm will have an incentive to increase production in order to earn more profit. This increased production will require more resources, thereby increasing the demand for those resources.

The Demand for a Resource Will Increase If The