which of the following best illustrates the concept of derived demand? course hero

What happens when the demand for a product increases?

6) Which of the following statements best illustrates the concept of derived demand? A) When the price of gasoline goes up, the demand for motor oil will decline.B) A decline in the demand for shoes will cause the demand for leather to decline.C) A decline in the price of margarine will reduce the demand for butter.

Which resources will be in high and little demand?

Dec 06, 2019 · D. the derived demand for labor We say that the demand for labor is a derived demand because: A. labor is a necessary input in the production of every good or service. B. we demand the product that labor helps produce rather than labor service per se. C. the forces of supply and demand do not apply directly to labor markets.

What is the demand for a good?

Which of the following best illustrates the concept of derived demand? (p. 211) A. The number of retail stores in a downtown area decreases and demand for retail goods increases. B. An increase in the number of new single-family homes results from a spurt in the gross national product. C. The heat wave results in an increased demand for air conditioners. D.

What makes the resource demand curve more or less elastic?

Which of the following best illustrates the concept of derived demand?

Which of the following best illustrates the concept of "derived demand"? An automobile firm faces an increase in the demand for cars it supplies to the market, which leads to an increase in the demand for autoworkers.

What is the concept of derived demand?

Derived demand is an economic term that refers to the demand for a good or service that results from the demand for a different, or related, good or service. Derived demand is related solely to the demand placed on a product or service for its ability to acquire or produce another good or service.

What is derived demand example?

Thus the demand for labour is a derived demand from the demand for goods and services. For example, if the demand for a good such as wheat increases, then this leads to an increase in the demand for labour, as well as demand for other factors of production such as fertilizer.

What are the three main components of derived demand?

Derived demand is a market demand for a good or service that results from a demand for a related good or service. Derived demand has three distinct components: raw materials, processed materials, and labor. Together, these three components create the chain of derived demand.Mar 14, 2019

What is derived demand quizlet?

Derived Demand. The demand for a resource that arises from the demand for the good produced by the resource.

What is derived demand for education?

When the demand for one good or service results in the demand for another good or service that is a necessary part of the production process.

What is derived demand class 11?

Derived demand or Indirect demand: The goods or services demanded or needed for manufacturing the goods and satisfying the consumer indirectly is known as derived demand.

What is derived demand tutor2u?

Derived demand is demand that comes from (is derived) from the demand for something else. Thus, the demand for machinery is derived from the demand for consumer goods that the machinery can make.

What is derived demand and direct demand?

Direct and derived demand. Direct demand is the demand for a final good. Food, clothing and cell phones are an example of this. Also called autonomous demand, it's independent of the demand for other products. Derived demand is the demand for a product that comes from the usage of others.Sep 8, 2021