Understand the factors that affect the demand for production inputs, including how product demand, the cost of various production inputs, their availability, and their efficiency influence this demand.

Quick explanation

Understand the factors that affect the demand for production inputs, including how product demand, the cost of various production inputs, their availability, and their efficiency influence this demand

• This point belongs to Firms and production, especially Firms and production outcomes.
• You need to be able to understand the factors that affect the demand for production inputs, including how product demand, the cost of various production inputs, their availability, and their efficiency influence this demand.
• The key ideas to know are Define, Explain, and Identify.
• Use the linked flashcards and practice questions to check recall, then practise applying the idea in an exam-style answer.