Question

Which of the following is an example of a firm’s derived demand? a. Workers with higher levels of education earn more, on average, than workers with lower levels of education. b. Factors that decrease the demand for labor will decrease the equilibrium wage. c. A tractor manufacturer’s demand for assembly-line workers is inseparably linked to the supply of tractors. d. All of the above are correct.

Answer 1

Answer:

c. A tractor manufacturer’s demand for assembly-line workers is inseparably linked to the supply of tractors

Explanation:

Derived demand is when the demand for a good, service or labour is as a result of demand for another good or service.

The demand for assembly line workers is as a result of demand for tractors. If there was no demand for tractors ,there would be no need to employ assembly line workers.

I hope my answer helps you.