The Quantity Required of a Dependent Demand Item Is Computed

question 58

True/False

The quantity required of a dependent demand item is computed from the demand for the final products in which the item is used.

---

Definitions:

Utility Function

A mathematical representation that ranks individual preferences for various goods or services, depicting how choices provide levels of satisfaction or utility.

Income

The financial gain received by an individual or a business in exchange for providing goods or services or through investing capital.

Labor Income

Earnings derived from work, including wages, salaries, bonuses, and other compensation for employment.

Nonlabor Income

Earnings derived from sources other than employment, such as investments, pensions, or inheritance.