Changes in Factor Demand
Shifters of Factor Demand
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Changes in Factor Supply
Labor Supply Shifters
Graphical Analysis: Demand Shift
Increase in labor demand → higher wage and more workers hired
Graphical Analysis: Supply Shift
Increase in labor supply → lower wage but more workers employed
Factor Markets for Land and Capital
Land
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Capital
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Least-Cost Rule and Profit-Maximizing Rule
Least-Cost Combination of Resources
Profit-Maximizing Combination
AP Exam Tips
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Common Mistakes
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