Chapter 13R, Problem 2MCQ

To determine

The correct option that define the results of demand for automobiles workers.

Answer to Problem 2MCQ

Option a is correct.

Explanation of Solution

Explanation for correct option:

a.

Demand for automobiles workers is a derived demand because demand for workers will arise if demand for automobile workers increase and vice-versa. Therefore, option a is correct.

Explanation for incorrect options:

b.

Irrational demand refers to the demand where there is no connection between the prices and the demand of the products. Therefore, option b is incorrect.

c.

Elastic demand refers to the demand where demand keeps on increasing even if prices of the products remain constant. Therefore, option c is also incorrect.

d.

Inelastic demand refers to the demand which remains constant even if prices of the products are changing with greater fluctuations. Therefore, option d is incorrect.

e.

Unit elastic demand for products refers to the demand which changes in the same proportion as the changes occur in the prices of the product. Therefore, option e is incorrect.

Economics Concept Introduction

Factor of production: Factor of production refers to the components or the resources that are required for producing intangible or tangible products.

Demand: Demand refers to the quantity of products that is sufficient to be produced to meet requirements of all customers.