Explain the statement “the demand for resources is a derived demand”.

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Answer 1

Question

Chapter 12, Problem 1CQ

To determine

Explain the statement “the demand for resources is a derived demand”.

Expert Solution & Answer

Explanation of Solution

The derived demand is a famous economic concept explains the demand for goods and services is bring about from the demand for an intermediate or other related goods and services. The demand for resources is derived demand means, demand for factors of production (land, labor capital, machinery and so on) is due to there is a demand for goods and services in the market.

Generally employment of resources is negatively related to its price. If the price of the resources increases it leads to increase the production cost which in turn reduces the profit for the producers. This induce the producers to produce less. Thus, the resources are employed less amount.

Economics Concept Introduction

Demand: Demand refers to the total value of goods and services that are demanded at a particular price in a given period of time.

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Answer 2

Question

Chapter 12, Problem 1CQ

To determine

Explain the statement “the demand for resources is a derived demand”.

Expert Solution & Answer

Explanation of Solution

The derived demand is a famous economic concept explains the demand for goods and services is bring about from the demand for an intermediate or other related goods and services. The demand for resources is derived demand means, demand for factors of production (land, labor capital, machinery and so on) is due to there is a demand for goods and services in the market.

Generally employment of resources is negatively related to its price. If the price of the resources increases it leads to increase the production cost which in turn reduces the profit for the producers. This induce the producers to produce less. Thus, the resources are employed less amount.

Economics Concept Introduction

Demand: Demand refers to the total value of goods and services that are demanded at a particular price in a given period of time.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 12, Problem 1CQ

To determine

Explain the statement “the demand for resources is a derived demand”.

Expert Solution & Answer

Explanation of Solution

The derived demand is a famous economic concept explains the demand for goods and services is bring about from the demand for an intermediate or other related goods and services. The demand for resources is derived demand means, demand for factors of production (land, labor capital, machinery and so on) is due to there is a demand for goods and services in the market.

Generally employment of resources is negatively related to its price. If the price of the resources increases it leads to increase the production cost which in turn reduces the profit for the producers. This induce the producers to produce less. Thus, the resources are employed less amount.

Economics Concept Introduction

Demand: Demand refers to the total value of goods and services that are demanded at a particular price in a given period of time.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 12, Problem 1CQ

To determine

Explain the statement “the demand for resources is a derived demand”.

Expert Solution & Answer

Explanation of Solution

The derived demand is a famous economic concept explains the demand for goods and services is bring about from the demand for an intermediate or other related goods and services. The demand for resources is derived demand means, demand for factors of production (land, labor capital, machinery and so on) is due to there is a demand for goods and services in the market.

Generally employment of resources is negatively related to its price. If the price of the resources increases it leads to increase the production cost which in turn reduces the profit for the producers. This induce the producers to produce less. Thus, the resources are employed less amount.

Economics Concept Introduction

Demand: Demand refers to the total value of goods and services that are demanded at a particular price in a given period of time.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 12, Problem 1CQ

To determine

Explain the statement “the demand for resources is a derived demand”.

Expert Solution & Answer

Explanation of Solution

The derived demand is a famous economic concept explains the demand for goods and services is bring about from the demand for an intermediate or other related goods and services. The demand for resources is derived demand means, demand for factors of production (land, labor capital, machinery and so on) is due to there is a demand for goods and services in the market.

Generally employment of resources is negatively related to its price. If the price of the resources increases it leads to increase the production cost which in turn reduces the profit for the producers. This induce the producers to produce less. Thus, the resources are employed less amount.

Economics Concept Introduction

Demand: Demand refers to the total value of goods and services that are demanded at a particular price in a given period of time.

Answer 6

Chapter 12, Problem 1CQ

To determine

Explain the statement “the demand for resources is a derived demand”.

Expert Solution & Answer

Explanation of Solution

The derived demand is a famous economic concept explains the demand for goods and services is bring about from the demand for an intermediate or other related goods and services. The demand for resources is derived demand means, demand for factors of production (land, labor capital, machinery and so on) is due to there is a demand for goods and services in the market.

Generally employment of resources is negatively related to its price. If the price of the resources increases it leads to increase the production cost which in turn reduces the profit for the producers. This induce the producers to produce less. Thus, the resources are employed less amount.

Economics Concept Introduction

Demand: Demand refers to the total value of goods and services that are demanded at a particular price in a given period of time.

Answer 7

Chapter 12, Problem 1CQ

To determine

Explain the statement “the demand for resources is a derived demand”.

Answer 8

Expert Solution & Answer

Explanation of Solution

The derived demand is a famous economic concept explains the demand for goods and services is bring about from the demand for an intermediate or other related goods and services. The demand for resources is derived demand means, demand for factors of production (land, labor capital, machinery and so on) is due to there is a demand for goods and services in the market.

Generally employment of resources is negatively related to its price. If the price of the resources increases it leads to increase the production cost which in turn reduces the profit for the producers. This induce the producers to produce less. Thus, the resources are employed less amount.