Consider the demand for labour in the computer chip industry. The demand for labour
A) is shown by a perfectly inelastic demand for labour.
B) is shown by a perfectly elastic demand for labour.
C) has a demand curve that is backward- bending.
D) is derived from the demand for computer chips.

Question

Quizplus · Accepted Answer

The demand for labor in any industry, including the computer chip industry, is derived from the demand for the final product that the labor helps to produce. In this case, the demand for labor in the computer chip industry is derived from the demand for computer chips.

Consider the Demand for Labour in the Computer Chip Industry