Demand for inputs is a derived demand because
A)it is derived from the need for income.
B)it corresponds to the derived supply of the inputs.
C)producers want the input to produce the finished good.
D)it is downward sloping.

Question

Quizplus · Accepted Answer

Demand for inputs is derived from the demand for the finished products that these inputs help produce. Producers demand the inputs because they want to produce the finished goods. This makes it a derived demand.

Demand for Inputs Is a Derived Demand Because