Derived demand refers to the demand for factors of production such as labor, capital, and raw materials that are used in the production of goods and services. The demand for these factors is derived from the demand for the final product. For example, the demand for steel is derived from the demand for automobiles that use steel in their production.

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Derived Demand Is

Question 132

Multiple Choice

Derived demand is

A) a derivative of the demand curve.
B) the demand for goods and services produced by companies using scarce resources.
C) the demand for advertising to increase the sales of the product.
D) the demand for the factors of production that are used to produce goods and services.

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