Asked by Justin alvarado on Jul 25, 2024
Verified
The demand for a resource depends primarily on:
A) the supply of that resource.
B) the demand for the product or service that it helps produce.
C) the price of that input.
D) the elasticity of supply of substitute inputs.
Derived Demand
Demand for a good or service that arises from the demand for another good or service; for example, the demand for steel is derived from the demand for cars.
Resource Demand
Refers to the total amount of goods and services that businesses require to produce their own goods and services.
- Grasp the principle of derived demand in labor and resource markets.
Verified Answer
RM
Rushabh MeherJul 28, 2024
Final Answer :
B
Explanation :
The demand for a resource is primarily derived from the demand for the product or service that it helps produce. The more demand there is for a product or service, the more demand there will be for the resources needed to produce it. The supply of the resource, the price of the input, and the elasticity of supply of substitute inputs can all affect the demand for the resource, but they are secondary factors.
Learning Objectives
- Grasp the principle of derived demand in labor and resource markets.
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