Which of the following best describes the concept of "derived demand?
"
A)The price of corn land determines the price of corn.
B)The price of corn land has nothing to do with the price of corn.
C)The price of corn determines the price of the land on which corn is grown.
D)Cheap labor means cheap corn.

Question

Quizplus · Accepted Answer

Derived demand refers to the demand for a good or service that results from the demand for another good or service. In this case, the demand for land on which corn is grown is derived from the demand for corn itself. Therefore, the price of corn determines the price of the land on which corn is grown.

Which of the Following Best Describes the Concept of "Derived