The demand for inputs is ________ because it depends on the demand for outputs.
A) a secondary demand
B) a derived demand
C) inconsequential
D) unrelated to cost

Question

Quizplus · Accepted Answer

The demand for inputs is considered a derived demand because it directly depends on the demand for the outputs they help to produce. If there's high demand for a product, the demand for the materials and labor needed to make that product also increases.

The Demand for Inputs Is ________ Because It Depends on the Demand