Demands for factors are different from goods and services demands, it is not a direct demand. As we are thirsty, we buy water or juice which directly satisfy our demand. However, factor demand is derived demand. If the output demand is high, then so must the demand of factor that are used in the production process. For example, if there are higher demand for housing, then demand for housing land and construction worker increase.

Do you notice any demand for goods and services increase in recent years? If so, do you also notice the demand increase for resources that used to produce these products?