What does it mean to say that the demand for a factor is a d
What does it mean to say that the demand for a factor is a derived demand?
The demand for a factor is not influenced by the demand for the product that the factor is used to produce.
Changes in the wage rate will shift the demand curve for labor.
Changes in the price of capital will shift the demand curve for capital.
The demand for a factor is the result of some other demand, such as the demand for the product that the factor is used to produce.
Solution
Derived Demand is a consequence of demand of something else
Hence Option D describes correctly this definition
Option D is correct response
