BuyFind

Economics (MindTap Course List)

13th Edition
Roger A. Arnold
Publisher: Cengage Learning
ISBN: 9781337617383
BuyFind

Economics (MindTap Course List)

13th Edition
Roger A. Arnold
Publisher: Cengage Learning
ISBN: 9781337617383

Solutions

Chapter
Section
Chapter 26, Problem 1QP
Textbook Problem

What does it mean to say that the demand for a factor is a derived demand?

Expert Solution
To determine

Meaning of derived demand for a factor.

Explanation of Solution

Derived demand is the demand for the factors of production that depend on the demand for the good that the factor produces. Since the demand for labor depends on the demand for goods and services that the labor produces, the demand for labor is a derived demand. For example, when the demand for product increases, the demand for labors also increases.

Economics Concept Introduction

Derived demand: Derived demand refers to the demand for the factors of production that depend on the demand for the good the factor produces.

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Chapter 26 Solutions

Economics (MindTap Course List)
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