Econ Q... equivalent, building, decrease, increase, example

toocfatoo

17. "DEMAND FOR A PRODUCTIVE RESOURCE:
a) will increase if the price of other inputs increases.
b) will decrease if technological change improves the productivity of the input.
c) is equivalent to the MRP of the resource when the quantities of other inputs are allowed to vary"

ANSWER: A.

Wouldn't demand for a productive resource DECREASE if the price of other inputs increases? for example, if a firm is building a car and the price of steel skyrockets, less cars will be made, and thus the demand for a productive input (lets say the leather that goes on the seats) will decrease?

also, if tech change improves the productivity of the input, why would you have more demand for the input, wouldn't you have less as the productivity has increased and thus you need less of the input to create the same output?

smartpants

Great way of putting it reebs. Basically a "substitute" type question. Though the question is not well worded, in my opinion.

Londonrocks

Horribly worded question!