The Industry Demand for an Input Is Called Derived Demand

question 36

Multiple Choice

The industry demand for an input is called derived demand because:

• A)the demand for the input is derived from the demand for the final product.
• B)the industry's input demand curve is the same as the firm's input demand curve.
• C)the demand for the input is derived from the supply of other inputs.
• D)the industry's input demand curve coincides with the marginal product curve of the input.

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Definitions:

Sensory Adaptation

The process by which sensory receptors become less sensitive to constant stimuli over time.

Just Noticeable Difference

The smallest difference in stimulus intensity that a specific sense can detect.

Just Noticeable Difference

The minimal change in a stimulus that can just barely be detected by the organism.

Difference Threshold

The minimum difference in intensity between two stimuli required for them to be perceived as different 50% of the time.