Why Is Demand for Inputs a Derived Demand

question 10

Multiple Choice

Why is demand for inputs a derived demand?

• A) The demand for output leads producers to demand inputs used to produce finished goods.
• B) It is derived from the need for income.
• C) It is due to the diminishing marginal product of inputs.
• D) It corresponds to the derived supply of the inputs.

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Definitions:

Grammatically Correct

Adhering to the rules of grammar in a given language, resulting in correct and understandable sentences.

Truth Table

A mathematical table used to determine the truth value of a logic expression based on all the possible combinations of its variables.

Contingent

Dependent on or conditioned by something else; subject to chance or variability.

Formula

A mathematical relationship or rule expressed in symbols, typically used to solve problems or to define a process.