The demand for labor is considered a derived demand since it depends on

Question

Quizplus · Accepted Answer

The demand for labor is derived from the consumer demand for the output produced. This means that firms hire workers to produce goods or provide services demanded by consumers. If there is high demand for a product, firms will need more workers to produce it, resulting in an increase in labor demand. Conversely, if there is low demand for a product, firms will need fewer workers, leading to a decrease in labor demand.

The Demand for Labor Is Considered a Derived Demand Since