What is the difference between a change in resource demand and a change in the quantity of a resource demanded? What factors contribute to a change in resource demand or a change in the quantity of a resource demanded?
What will be an ideal response?
A change in resource demand is a shift of the entire demand curve or schedule of the resource to the right or left. A change in the quantity of a resource demanded is a movement along a given resource demand schedule or curve. A change in resource demand is caused by: (a) a change in the demand for the product for which the resource is an input; (b) a change in the productivity of the resource; and (c) a change in the prices of other resources that are substitutes or complements of the resource. The sole cause of a movement along an existing resource demand curve is a change in the price of the resource.
You might also like to view...
The firm in the figure above has a total cost equal to ________
A) $5.10 × 10 B) $8.00 × 10 C) ($5.10 - $8.00 ) × 10 D) ($8.00 - $5.10 ) × 10 E) None of the above answers is correct because more information is needed.
Phoenix is a schoolteacher. In which of the following situations is she experiencing diminishing marginal utility?
a. She loves her whiteboard, but when she receives a second one for her classroom, she finds she rarely uses it. b. She buys extra crayons for her class using her own money because her students use up crayons so quickly. c. She complains to the administration that she does not have enough supplies for her classroom; she has 32 students this year! d. She realizes that it would be useless to purchase electronic tablets for the classroom unless she buys enough for the entire class.