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5.2 Changes in Factor Demand and Factor Supply

Part of Factor Markets in AP® Microeconomics. Read the opening section, then create a free account for the full interactive lesson, practice, and progress tracking.

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Changes in Factor Demand and Factor Supply

The dynamics of factor markets are driven by changes in the demand for and supply of factors of production, such as labor, land, and capital. Understanding these changes is essential to analyze how wages, rents, and other resource prices adjust over time, and how resources are allocated in the economy.

In this unit

4 lessons

  1. 5.1Introduction to Factor MarketsPreview lesson
  2. 5.2Changes in Factor Demand and Factor SupplyThis lesson
  3. 5.3Profit-Maximizing Behavior in Perfectly Competitive Factor MarketsPreview lesson
  4. 5.4Monopsonistic MarketsPreview lesson

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