Factor demand is said to be a derived demand because it depends on product demand.

Name: Factor demand is said to be a derived demand because it depends on product demand.
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Factor demand refers to the amount of factors of production (such as labor, capital, and land) that producers require to meet the demand for their products. The demand for factors of production is derived from the demand for the products they are used to produce. Thus, factor demand is said to be a derived demand.

Factor Demand Is Said to Be a Derived Demand Because