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The Model of Demand for Production Factors in Agriculture

This publication is theoretical in nature. It attempts to determine a hypothetical relation between the supply of agricultural production determined by the given demand for it on the one hand and the demand for factors involved in the production on the other. It is included in one model of reasoning with the use of regularities and coefficients known in microeconomics. In particular, the demand, supply and production elasticity coefficients were used. The starting point is assumptions resulting from the demand and three-factor function of production and about rational choices of farm producers. The hypothesis that the relation between supply of production for the demand for it and demand for production factors is determined by changes in production efficiency was positively verified by means of theoretical and formal analysis. This was proved by reference to price elasticity of production and supply and price elasticity of demand for production factors in relation to a product. This is an attempt to fill a research gap in this field.