Figure 19-2
-In Figure 19-2, the derived demand curve is the line
A)ABCD.
B)CDEF.
C)DEF.
D)ABCDEF.

Question

Figure 19-2 
-In Figure 19-2, the derived demand curve is the line
A)ABCD. 
B)CDEF. 
C)DEF. 
D)ABCDEF.

Quizplus · Accepted Answer

The derived demand curve shows the quantity demanded of an input in response to the quantity demanded of the output it helps to produce. In this figure, the derived demand curve is represented by the line CDEF, which shows the quantity of labor demanded at different wage rates in response to changes in the quantity of output demanded. The line ABCD represents the relationship between the quantity of output demanded and the price of that output. Therefore, choice B is the correct answer.

Figure 19-2 -In Figure 19-2, the Derived Demand Curve Is the Line