The number of units of output that a machine will produce decreases, ceteris paribus. how will this change in productivity affect demand for the machine?

Respuesta :

The number of units of output that a machine will produce decreases, ceteris paribus. hence, The demand for the machines increases.

How does productivity affect demand?

Productivity is a measure of how effectively commodities or services are produced. Productivity is sometimes represented as a ratio of the whole output to a single input or the total input used in a production process, or output per unit of input, usually over a predetermined time period.

In economics, productivity is the ratio of output to input, such as labour, capital, or any other resource. It is frequently determined for the economy as a ratio of hours worked to gross domestic product (GDP). Demand is the amount of a good that buyers are ready and willing to buy at different prices at a particular time. The demand curve is another name for the relationship between price and quantity demand.

Hence,  The number of units of output that a machine will produce decreases, ceteris paribus. hence, The demand for the machines increases.

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