Concept:The demand curve for factors of production shows the relationship between the price of a factor and the quantity of that factor demanded by firms.
Explanation:Firms hire factors of production in order to produce goods and services.
According to the law of demand, as the price of a factor falls, the quantity demanded of that factor rises.
Therefore, the demand curve for factors of production slopes downward from left to right.
For example, when wage rates fall, firms tend to employ more labour.
In contrast, a perfectly elastic, upward-sloping, or perfectly inelastic curve would not reflect this inverse relationship between price and quantity demanded.
Answer:C. slopes downwards.
