Question

Which of the following will not cause a shift in the demand for resource X?

A. A decline in the price of resource X
B. An increase in the price of the product resource X is producing
C. A decrease in the price of substitute resource Y
D. An increase in the productivity of resource X

Answer 1

An increase in the price of the product that resource X is producing will not cause a shift in the demand for resource X.

Step-by-step explanation:

An increase in the price of the product that resource X is producing will not cause a shift in the demand for resource X. This is because a change in the price of the product resource X is producing does not directly impact the demand for resource X itself. The demand for resource X is determined by factors such as the availability of substitutes, changes in consumer preferences, and changes in technology or productivity.