Explain the statement “the demand for resources is a derived demand”.
Explanation of Solution
The derived demand is a famous economic concept explains the demand for goods and services is bring about from the demand for an intermediate or other related goods and services. The demand for resources is derived demand means, demand for factors of production (land, labor capital, machinery and so on) is due to there is a demand for goods and services in the market.
Generally employment of resources is negatively related to its
Demand: Demand refers to the total value of goods and services that are demanded at a particular price in a given period of time.
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Chapter 25 Solutions
Economics: Private and Public Choice (MindTap Course List)
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