Which of the following is an example of a firm's derived demand?
A)The wage that a worker earns is a function of her human capital.
B)A firm's demand for college textbook study guide authors is inseparably linked to the supply of college textbooks.
C)Factors that increase the demand for labor will increase the equilibrium wage.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Derived demand refers to the demand for a factor of production, such as labor or raw materials, that comes from the demand for the output produced by that factor. Option B is the only example given that fits this definition, as the demand for textbook study guide authors is derived from the demand for college textbooks. Options A and C refer to factors that affect the wage rate, but not specifically to derived demand.

Which of the Following Is an Example of a Firm's