Which of the following is an example of derived demand?
A) Economic actions that decrease labor demand will lower wages.
B) More highly educated workers earn more than less-educated workers.
C) Garment industry demand for workers who sew depends on the number of garments produced.
D) A lower price for pencils will lead to fewer pencil workers.
E) A citrus disease will raise citrus fruit prices,leading to more fruit produced by plantations not affected by the disease.

Question

Quizplus · Accepted Answer

Derived demand refers to the demand for a resource that arises from the demand for the goods or services that the resource is used to produce. In this case, the demand for workers who sew in the garment industry is derived from the demand for the garments they produce.

Which of the Following Is an Example of Derived Demand