The idea that the demand for auto workers stems from the demand for automobiles is
A) the value of the marginal product of auto workers.
B) derived demand.
C) indirect demand.
D) output demand.

Question

Quizplus · Accepted Answer

Derived demand refers to the demand for a factor of production or input based on the demand for the output it helps to produce. In this case, the demand for auto workers is derived from the demand for automobiles, making option B the correct answer.

The Idea That the Demand for Auto Workers Stems from the Demand