Asked by kkoln kkijknjn on Apr 29, 2024
Verified
The demand for ________ is a ʺderived demand.ʺ
A) ice cream cones on a hot day
B) tax-free municipal bonds
C) a hair stylist by a salon owner
D) a birthday cake for your brother
Derived Demand
Demand that exists not for the good or service itself, but for the goods or services produced by it. This demand is dependent on the demand for another product or service.
Hair Stylist
A professional who specializes in cutting, coloring, and styling hair to improve or maintain a person's appearance.
Salon Owner
An individual who owns and manages a salon, responsible for its operational, financial, and administrative aspects.
- Differentiate among economic notions relevant to labor demand, notably derived demand, marginal product, and marginal revenue productivity.
Verified Answer
MC
Mikelle CarterMay 01, 2024
Final Answer :
C
Explanation :
Derived demand refers to the demand for goods and services that arises from the demand for another good or service. In this case, the demand for a hair stylist by a salon owner is derived from the demand for hair styling services by the salon's customers.
Learning Objectives
- Differentiate among economic notions relevant to labor demand, notably derived demand, marginal product, and marginal revenue productivity.