Which of the following factors have a derived demand?
i.labor
ii.capital
iii.raw materials
A) i and ii
B) ii and iii
C) i and iii
D) i, ii, and iii
E) i only

Question

Quizplus · Accepted Answer

Derived demand refers to the demand for a factor of production or good that results from the demand for another good or service. Labor, capital, and raw materials all have derived demands because their demand is dependent on the demand for the final goods and services they help to produce.

Which of the Following Factors Have a Derived Demand