question archive Derived demand for labor means that when a firm hires labor, it has to derive its demand: A) mathematically
Derived demand for labor means that when a firm hires labor, it has to derive its demand: A) mathematically
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Derived demand for labor means that when a firm hires labor, it has to derive its demand:
A) mathematically.
B) based on the labor supply.
C) from the demand for the product that the labor produces.
D) based on the minimum wage.
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The correct answer is (C) from the demand for the product that the labor produces.
A derived demand is demand that arises as a result of demand for another. From the question, labor is a derived demand from demand of its products or services it creates. Demand for labor increases when there is demand for products by it consumers. It also decreases if demand for product decreases.
