Multiple Choice
A clothing manufacturing plant would most likely be classified as which factor of production?
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0. Basic Principles of Economics
Factors of Production
Multiple Choice
Which of the following can shift the resource demand curve in a market?
A
A change in consumer tastes for the final product
B
A change in the price of the resource itself
C
A change in the supply of the resource
D
A change in the productivity of the resource
Verified step by step guidance1
Understand that the resource demand curve shows the relationship between the price of a resource and the quantity of that resource demanded by firms, holding other factors constant.
Recognize that a change in the price of the resource itself causes a movement along the resource demand curve, not a shift of the curve.
Identify that changes in consumer tastes for the final product can affect the demand for the final product, which in turn affects the demand for the resource used to produce it, potentially shifting the resource demand curve.
Note that a change in the supply of the resource affects the resource supply curve, not the resource demand curve, so it does not shift the demand curve.
Understand that a change in the productivity of the resource changes how much output can be produced with a given amount of the resource, which affects the marginal product and thus shifts the resource demand curve.
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