Microeconomics (7th Edition)
Microeconomics (7th Edition)
7th Edition
ISBN: 9780134737508
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 17, Problem 17.1.1RQ
To determine

Derived demand.

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Explanation of Solution

Derived demand is the demand for factors of production that depends on the demand for the good that the factor produces. Since the demand for labor depends on the demand for goods and services that the labor produces; then the demand for labor is a derived demand.

Economics Concept Introduction

Concept introduction:

Derived demand: Derived demand refers to the demand for factors of production that depends on the demand for the good that the factor produces.

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Microeconomics (7th Edition)

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