Question: 8. Markets are highly interrelated. An increase (decrease) in the demand for a product will cause the demand for resources utilized to produce the product

8. Markets are highly interrelated. An increase (decrease) in the demand for a product will cause the demand for resources utilized to produce the product to expand (decline).

Similarly, changes in a resource market will have indirect effects. An increase (decrease)

in the price of a resource will cause the supply of products utilizing that input to decline

(expand) and the demand for substitute productive inputs to increase (decline).

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