A demand for a factor of production is said to be "derived" because the factor's demand depends
A)on the demand for the good or services it helps to make.
B)entirely on corporate advertising.
C)heavily on public choice.
D)heavily on government policy.
E)entirely on the cost of the factor.

Question

Quizplus · Accepted Answer

The demand for a factor of production is said to be "derived" because it depends on the demand for the goods or services it helps to make. For example, the demand for steel production workers is derived from the demand for steel products, such as cars and buildings.

A Demand for a Factor of Production Is Said to Be