JAMB - Economics (2024 - No. 72)
The demand for factors of production is said to be
joint
complementary
derived
composite
Explicació
The concept of derived demand refers to the demand for a factor of production, such as labour or capital, that is derived from the demand for the final goods or services that the factor helps to produce. In other words, the demand for factors of production is derived from the demand for the products that require those factors.
For example, the demand for labour in the construction industry is derived from the demand for new houses or building: If there is an increase in the demand for housing, it will lead to an increase in the demand for construction workers.
For example, the demand for labour in the construction industry is derived from the demand for new houses or building: If there is an increase in the demand for housing, it will lead to an increase in the demand for construction workers.