Asked by Sandra Vappie on Jul 18, 2024
Verified
How do the factors determining resource demand differ from those in the product market?
Resource Demand
The need or desire for specific resources in order to produce goods or services within an economy.
Product Market
The market where end products or services are made available to consumers, businesses, and governmental bodies.
Determining Factors
Key elements that significantly influence the outcome or condition of a specific situation or context.
- Elucidate the notion of derived demand within the framework of resource markets.
- Explain how different market structures, including pure and imperfect competition, influence the demand for resources and the determination of prices.
Verified Answer
DG
Daisha GetterJul 24, 2024
Final Answer :
The resource demand curve is a derived demand; it is derived from the product it is used to make. The demand for a resource depends on its productivity and the market value or price of the product it is used to produce. The quantity demanded of a product is based on the price of that product, while there are other factors, or determinants, influencing the demand for the product (e. g. , preferences, expectations, number of buyers, price of related goods, income).
Learning Objectives
- Elucidate the notion of derived demand within the framework of resource markets.
- Explain how different market structures, including pure and imperfect competition, influence the demand for resources and the determination of prices.
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