A Determinant of the Demand for a Factor of Production

question 129

Multiple Choice

A determinant of the demand for a factor of production is the:

• A) price of the factor.
• B) price of a substitute factor.
• C) marginal cost of the factor.
• D) quantity of the factor supplied.

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Definitions:

Consumer Income

The total earnings of consumers, encompassing wages, dividends, and other sources of income, which determine their purchasing power.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing to purchase at various prices.

Price of Belts

This refers specifically to the market value or cost at which belts are sold or purchased.

Demand

The desire and ability of consumers to purchase goods or services at a given price.