What can shift the resource demand curve?
Understand the Problem
The question is asking about the factors that can cause a shift in the resource demand curve in economics. This involves understanding what influences demand for resources, such as changes in consumer preferences, technology, prices of related goods, number of consumers, and expectations about the future.
Answer
A change in the demand for the product, change in the productivity of the resource, and change in the prices of other resources that are substitutes or complements.
Changes in resource demand can be caused by: (1) a change in the demand for the product for which the resource is an input; (2) a change in the productivity of the resource; and (3) a change in the prices of other resources that are substitutes or complements of the resource in question.
Answer for screen readers
Changes in resource demand can be caused by: (1) a change in the demand for the product for which the resource is an input; (2) a change in the productivity of the resource; and (3) a change in the prices of other resources that are substitutes or complements of the resource in question.
More Information
Changes in demand for substitute or complementary resources influence whether a resource becomes more or less attractive, thereby shifting the demand curve.
Tips
Avoid assuming that only price changes of the resource itself can shift the demand curve; non-price factors also play a critical role.
Sources
- Resource Demand Shift Factors - Harper College - .harpercollege.edu
