The Markets for Factors of Production Differ from Markets for Products

question 157

Multiple Choice

The markets for factors of production differ from markets for products in an important aspect because

• A) markets for factors are rarely in equilibrium,whereas markets for products are usually in equilibrium.
• B) demand for factors of production is a derived demand.
• C) the shape of the product's demand curve will be more elastic than the shape of the factor's demand curve.
• D) supply of a factor is dependent on the supply of a product.
• E) the shape of the product's supply curve will be more elastic than the shape of the factor's supply curve.

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Definitions:

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