Final answer:
Employers will hire more units of a resource if its productivity increases, as this elevates the business's profitability. Higher profitability typically drives firms to boost production, necessitating an increase in labor or resource inputs.
Step-by-step explanation:
Employers will hire more units of resource if the productivity of the resource increases. This is because when productivity goes up, it means that each unit of resource can produce more goods or services, which leads to an increase in the profitability of the business. When a firm's profits are higher, they are more inclined to expand production, which often requires hiring more labor or acquiring more resources to meet the increased demand for their product.
It is important to recognize that if the price of the good being produced declines or if there is an increase in the price of complementary resources, it could lead to a decrease in profitability and thus potentially reduce the demand for labor or other resources. Conversely, an increase in the price of the resource would likely decrease the demand for that resource as it becomes more costly for employers to hire additional units.