When the Demand Curve for an Input Is a Derived

question 170

Multiple Choice

When the demand curve for an input is a derived demand this means that

• A) the demand curve is derived from the demand for the final product being produced.
• B) the demand curve depends upon the MFC.
• C) the law of diminishing marginal product does not hold.
• D) the demand curve slopes upward.

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Definitions:

Independent Goods

Products or services whose demand is not directly related to the demand for other goods; their consumption or purchase does not affect the consumption or purchase of other products.

Quantity Supplied

The amount of a good that producers are willing to sell at a given price over a specified period.

Quantity Demanded

The amount of a good or service consumers are willing and able to purchase at a given price.

Price

The cost at which a product or service is offered for sale in the marketplace.