Reflections on Chapter 18: The Markets for the Factors of Production

1. What is Value of the Marginal Product and how does it affect the price and demand for the factors of production?
2. List two causes for a shift in the demand for labor and two causes for a shift in the supply of labor.
3. Explain how a change in the supply of one of the factors of production affects the value of the marginal product, the demand, and the price for all the factors of production.