Since the demand for a resource depends on the demand for goods that the resource helps produce, the demand for each resource is
A) an elastic demand.
B) an independent demand.
C) a derived demand.
D) inversely related to the marginal productivity of the resource.

Question

Quizplus · Accepted Answer

The demand for a resource is a derived demand because it is derived from the demand for goods that the resource helps produce. The other options are incorrect because the demand for a resource is not necessarily elastic, it is not independent since it depends on the demand for goods, and it is not necessarily inversely related to the marginal productivity of the resource.

Since the Demand for a Resource Depends on the Demand