The demand curve for factors of production
-
A.
is perfect elastic -
B.
slopes upwards -
C.
slopes of downwards -
D.
is perfectly inelastic
Correct Answer: Option C
Explanation
The factors of production demand curve indicates the quantity of a factor demanded at alternative factor prices. The demand curve is downwards sloping from left to right.
An example is given below for the demand curve of labour, showing how wage rate affect the demand for labour.