The demand by a firm for inputs used in the production of a commodity that the firm offers for sale
A) is called a derived demand.
B) is directly related to the demand for the commodity.
C) is negatively sloped.
D) is all of the above.

Question

Quizplus · Accepted Answer

The demand for inputs by a firm is indeed called a derived demand because it depends on the demand for the final product the firm produces. This demand is directly related to the demand for the commodity; as demand for the product increases, so does the demand for inputs. The demand curve for inputs is negatively sloped, reflecting the law of demand.

The Demand by a Firm for Inputs Used in the Production