Annie Opatrny
25 November 2019
ECON 2600
HW 6
Chapter 13:
1. This means that the demand for a factor of production is related to how much is being
planned to supply.
7. When workers put forward more labor productivity per hour, they make more products
and start selling more. So, they will start to get higher wage rates and make more per hour when
they are more productive.
14. a. There will be a higher demand for the labor that produces the product after there is a
larger demand for the product.
b. Labor cost only gets a fraction of what the total cost is all together and what is earned from
production, which means that the demand for labor becomes less flexible.
c. As the demand for labor grows higher, substitutes become unavailable due to their now high
