The concept of derived demand indicated that the demand for a final good or service will be determined by the price of the inputs used to produce that final good or service.

Question

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Derived demand refers to the demand for a factor of production or intermediate good that occurs as a result of the demand for another intermediate or final good. It is not directly determined by the price of inputs but rather by the demand for the final product.

The Concept of Derived Demand Indicated That the Demand for a Final