Because a product's demand for an input to its production depends on the decision to produce this product,it is called ________ demand.
A) dependent
B) secondary
C) derived
D) production
E) input

Question

Quizplus · Accepted Answer

Derived demand refers to the demand for an input (such as labor or a raw material) that is dependent on the demand for the final product that the input helps to produce. The demand for the input is "derived" from the demand for the final product. Therefore, of the options given, "derived demand" best fits the given statement.

Because a Product's Demand for an Input to Its Production