Class, resource demand is derived from demand for products and services that the resources produce. Demand for products and services is a question of income and tastes. But resource demand is more passive in the sense that it is derived from the demand for the products the resource can produce. If a resource can’t be used in production of a desired product or service, there will not be any demand for it. Additionally, resources are often less mobile than products, so their geographic location relative to demand for the output they produce may be an important factor when determining demand for resources in particular geographic areas.

How does your firm's product demand impact the demand for your labor resource?