1)Why is the demand for labor considered a derived demand?

2)There are people who absolutely must have the latest fashions. Classify them as probably having elastic or inelastic demand.

1)Derived demand occurs when the demand for one product is caused by the demand for an intermediate product. In other words, derived demand is where a product is demanded because it has the ability to be utilized to produce another product or service. Labor is demanded because it can be used during the process of production to produce goods. Therefore, demand for labor is derived since it results from demand for products.

2)

They have inelastic demand.

The demand will be inelastic since whether the price rises or drops an individual will have to buy for the latest fashion.