WAEC - Economics (2023 - No. 2)
The demand for a factor input as a result of the demand for its output is known as
market demand
complementary demand
competitive demand
derived demand
Explicaţie
The demand for a factor input as a result of the demand for its output is known as derived demand. This is because the demand for the factor input is derived from the demand for the final product that the factor input is used to produce.
For example, the demand for labor is derived from the demand for goods and services that are produced by labor. If the demand for goods and services increases, then the demand for labor will also increase.
For example, the demand for labor is derived from the demand for goods and services that are produced by labor. If the demand for goods and services increases, then the demand for labor will also increase.