Which of the Following Is an Example of a Firm's

question 77

Multiple Choice

Which of the following is an example of a firm's derived demand?

• A)The wage that a worker earns is a function of her human capital.
• B)A firm's demand for college textbook study guide authors is inseparably linked to the supply of college textbooks.
• C)Factors that increase the demand for labor will increase the equilibrium wage.
• D)All of the above are correct.

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of consumers increases, in contrast to normal goods, where demand increases with rising income.

Macaroni and Cheese

Macaroni and cheese is a popular dish made primarily of cooked macaroni pasta and a cheese sauce, often served as a comfort food.

Price Elasticity

A measure of how sensitive the quantity demanded of a good is to a change in its price, indicating how changes in price affect sales volume.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded.