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labor demand is said to be derived demand because it is derived from the output levels in the goods market, which contribute to employers revenue and hence profit.
one important thing is that, it is a means to an end. that is something employers look out for to enhance production.
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What is an example for derived demand?
Derived demand comes from demand for another product. For example, if coal is in high demand, then there will be derived demand for mining. Another example: A farmer grows crops. In order to grow crops he needs fertilizer. Therefore, the amount of fertilizer he needs to buy, will derive from the amount of crops he needs to grow. Basically, derived demand comes as a result of demand for something else.
What are the 4 characteristics of business demand?
the 4 characteristics of business demand are derived demand, fluctuating demand, stimulating demand and finally demand elasticity!
What is derived demand?
Derived demand is the sort of demand that arises for particular goods or services, not for the goods or services themselves, but because of the use to which they can be put. Take for instance baking yeast. As the main purpose to which yeast can be put is baking bread, very little of yeast sales arise for any reason other than the use in making bread [and related products to rise]. One would, all things being equal, expect the demand for yeast to rise in line with the demand for other bread making ingredients. The demand for yeast could be described as derived demand. While ultimately most demand is derived, the key point is generally people would say, 'I'd like some bread', almost no one would say 'I'd like some yeast'.
What is potential demand?
what is potential demand?
What is local demand?
the demand that is existing more in a current scenario refers to as local demand.
Why is the demand for labor referred to as a derived demand?
Derived demand results from a demand for increase in intermediates goods or production resulting from another demand resulting for final or intermediate goods. For example, a demand for an item can make its production increase, which makes its labor increase.
What determines the supply and demand of the factors of production?
The demand for labor is a derived demand in that it depends on a company's decision to supply output in another market. This expansion in a market that has customers is the main factor in how much the demand for labor will increase.
What is meant by derived demand and how does this demand characteristic impact freight demand?
Derived demand is the demand to transport goods or services to location depend on demand to consume a goods or services to location. Freight of product is derived from the customer demand of product.
Why shipping is a derived demand?
Shipping is derived from the demand for transportation of goods, etc.
Where is business demand often derived?
The nature of the demand for products differs from consumer demand because it is often derived from consumer demand.
What does the demand for labor contribute to?
Demand for labor contributes to how much wages should be
What is an example for derived demand?
Derived demand comes from demand for another product. For example, if coal is in high demand, then there will be derived demand for mining. Another example: A farmer grows crops. In order to grow crops he needs fertilizer. Therefore, the amount of fertilizer he needs to buy, will derive from the amount of crops he needs to grow. Basically, derived demand comes as a result of demand for something else.
What will cause the capital stock when it increases?
Increases in the stock of capital will cause which of the following?The demand of labor increases.The demand of labor decreases.Selected answer No change in the demand of labor.First increase then decrease the demand of labor
Why is industrial demand called derived demand?
because the demand comes from end user
What are the types of demand?
interrelated demand joint/complement demand competitive derived composite independent
Demand for one good or service that is determined by demand for another good or service is .?
derived demand
Demand for one good or service that is determined by demand for another good or service is?
derived demand
