Q14
Demand for factors of production is
A.
Derived demand
AnswerB.
Joint demand
C.
Composite demand
D.
None of the above
Answer: Option A
Solution
Answer: Option A
Solution:
Demand for factors of production is derived demand. The demand for any factor of production, such as labor, physical capital or land is a derived demand because it arises not from the intrinsic utility provided by the factor but because of the value placed on the production it produces by consumers.