Derived
Demand
•
Derived
demand
is
the
demand
for
resources
•
There
are
four
resources:
land,
labor,
capital,
and
entrepreneurial
ability
•
The
demand
for
these
resources
is
derived
from
the
demand
for
the
final
products
–
The
demand for land on which to
grow corn is
derived from
the
demand for
corn
–
The
demand for labor with which to
produce
cars
is
derived from
the
demand for
cars
Copyright
2002 by The McGrawHill Companies, Inc.
All rights reserved.
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