Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 4: Problem 21

Other than the demand for labor, what would be another example of a "derived demand?"

Short Answer

Expert verified
An example of a derived demand other than labor would be the demand for natural resources, such as oil or gas. These resources are essential inputs in the production of other goods or services, and their demand is derived from the demand for the products that rely on them. For example, the demand for gasoline is derived from the demand for transportation services provided by vehicles using gasoline as a fuel. As transportation demand increases, so does the demand for gasoline, leading to an increased demand for crude oil as a natural resource.

Step by step solution

01

Example of a Derived Demand

An example of a derived demand other than labor would be the demand for natural resources, such as oil or gas, which are essential inputs in the production of other goods or services. In this case, the derived demand emerges from the demand for the products that rely on these natural resources. For instance, the demand for gasoline is a derived demand because it is mainly driven by the demand for transportation services provided by vehicles using gasoline as a fuel. As the demand for transportation services increases, so will the demand for gasoline, which leads to an increased demand for the natural resources required to produce gasoline, such as crude oil.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Name some factors that can cause a shift in the demand curve in labor markets.

Which of the following changes in the financial market will lead to an increase in the quantity of loans made and received: a. a rise in demand b. a fall in demand c. a rise in supply d. a fall in supply

How do economists define equilibrium in financial markets?

If the government imposed a federal interest rate ceiling of \(20 \%\) on all loans, who would gain and who would lose?

Predict how each of the following events will raise or lower the equilibrium wage and quantity of oil workers in Texas. In each case, sketch a demand and supply diagram to illustrate your answer. a. The price of oil rises. b. New oil-drilling equipment is invented that is cheap and requires few workers to run. c. Several major companies that do not drill oil open factories in Texas, offering many well-paid jobs outside the oil industry. d. Government imposes costly new regulations to make oil-drilling a safer job.
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free