Demand for the factors of production

Demand for a resource is a derivative of demand for the goods that can be produced with it.

Demand curve for a resource is downward sloping due to:

• Substitution of the resource with other resources in the production of the good.
• Substitution of the good with other goods.

Factors that shift demand curve:
Change in:

• demand for the goods
• productivity of the resource
• price of related resources.