Economics · Factor Pricing
The economic demand for a factor of production is commonly referred to as a 'derived demand' primarily because:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It arises primarily out of individual household means being scarce in relation to human wants
- 2It depends completely on the fixed supply schedule of other complementary inputs
- 3It stems directly from the demand for the final goods or services it helps produce✓
- 4It is directly a function of the net profitability of an entire enterprise
Correct answer
It stems directly from the demand for the final goods or services it helps produce
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