The idea that the demand for car workers stems from the demand for cars is ?
Correct answer: C. derived demand
- A. output demand
- B. indirect demand
- C. derived demand
- D. the value of the marginal product of auto workers.
Explanation
The demand for labour used to produce cars depends on consumers' demand for cars. This indirect relationship is called derived demand, because firms demand workers to produce a product demanded by consumers.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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