The demand for a commodity affects the demand for resources required to produce the concerned commodity.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 29, Problem 1E

To determine

To explain:

The demand for a commodity affects the demand for resources required to produce the concerned commodity.

Expert Solution & Answer

Explanation of Solution

Goods produced in market are made up of raw materials. Demand for raw materials or intermediate goods which is made to produce final goods for consumption is called derived demand. So, derived demand is the demand made of resources which is made to produce final goods.Consumption of the final goods affects derived demand.

For example,demand for petrol leads to demand for extraction. If demand for petrol is less due to increase in price of petrol or increase in price of automobiles etc., it will lead to less extraction. On the other hand, if demand for petrol rises, it leads to increase in extraction of petrol.

Economics Concept Introduction

Derived demand:

The demand for a good or service arising as the outcome of the demand for another good or service, is referred as derived demand.

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!

Students have asked these similar questions

Explain how markets can allocate resources in a way that they go to those who value them the most.

How many units of labor and capital should be purchased to maximize production? What is the maximum number of units of production?

Can you identify and explain your family’s interaction in the market for factors of production and your family’s interaction in the market for goods and services.

Answer 2

Question

Chapter 29, Problem 1E

To determine

To explain:

The demand for a commodity affects the demand for resources required to produce the concerned commodity.

Expert Solution & Answer

Explanation of Solution

Goods produced in market are made up of raw materials. Demand for raw materials or intermediate goods which is made to produce final goods for consumption is called derived demand. So, derived demand is the demand made of resources which is made to produce final goods.Consumption of the final goods affects derived demand.

For example,demand for petrol leads to demand for extraction. If demand for petrol is less due to increase in price of petrol or increase in price of automobiles etc., it will lead to less extraction. On the other hand, if demand for petrol rises, it leads to increase in extraction of petrol.

Economics Concept Introduction

Derived demand:

The demand for a good or service arising as the outcome of the demand for another good or service, is referred as derived demand.

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 29, Problem 1E

To determine

To explain:

The demand for a commodity affects the demand for resources required to produce the concerned commodity.

Expert Solution & Answer

Explanation of Solution

Goods produced in market are made up of raw materials. Demand for raw materials or intermediate goods which is made to produce final goods for consumption is called derived demand. So, derived demand is the demand made of resources which is made to produce final goods.Consumption of the final goods affects derived demand.

For example,demand for petrol leads to demand for extraction. If demand for petrol is less due to increase in price of petrol or increase in price of automobiles etc., it will lead to less extraction. On the other hand, if demand for petrol rises, it leads to increase in extraction of petrol.

Economics Concept Introduction

Derived demand:

The demand for a good or service arising as the outcome of the demand for another good or service, is referred as derived demand.

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 29, Problem 1E

To determine

To explain:

The demand for a commodity affects the demand for resources required to produce the concerned commodity.

Expert Solution & Answer

Explanation of Solution

Goods produced in market are made up of raw materials. Demand for raw materials or intermediate goods which is made to produce final goods for consumption is called derived demand. So, derived demand is the demand made of resources which is made to produce final goods.Consumption of the final goods affects derived demand.

For example,demand for petrol leads to demand for extraction. If demand for petrol is less due to increase in price of petrol or increase in price of automobiles etc., it will lead to less extraction. On the other hand, if demand for petrol rises, it leads to increase in extraction of petrol.

Economics Concept Introduction

Derived demand:

The demand for a good or service arising as the outcome of the demand for another good or service, is referred as derived demand.

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 29, Problem 1E

To determine

To explain:

The demand for a commodity affects the demand for resources required to produce the concerned commodity.

Expert Solution & Answer

Explanation of Solution

Goods produced in market are made up of raw materials. Demand for raw materials or intermediate goods which is made to produce final goods for consumption is called derived demand. So, derived demand is the demand made of resources which is made to produce final goods.Consumption of the final goods affects derived demand.

For example,demand for petrol leads to demand for extraction. If demand for petrol is less due to increase in price of petrol or increase in price of automobiles etc., it will lead to less extraction. On the other hand, if demand for petrol rises, it leads to increase in extraction of petrol.

Economics Concept Introduction

Derived demand:

The demand for a good or service arising as the outcome of the demand for another good or service, is referred as derived demand.

Answer 6

Chapter 29, Problem 1E

To determine

To explain:

The demand for a commodity affects the demand for resources required to produce the concerned commodity.

Expert Solution & Answer

Explanation of Solution

Goods produced in market are made up of raw materials. Demand for raw materials or intermediate goods which is made to produce final goods for consumption is called derived demand. So, derived demand is the demand made of resources which is made to produce final goods.Consumption of the final goods affects derived demand.

For example,demand for petrol leads to demand for extraction. If demand for petrol is less due to increase in price of petrol or increase in price of automobiles etc., it will lead to less extraction. On the other hand, if demand for petrol rises, it leads to increase in extraction of petrol.

Economics Concept Introduction

Derived demand:

The demand for a good or service arising as the outcome of the demand for another good or service, is referred as derived demand.

Answer 7

Chapter 29, Problem 1E

To determine

To explain:

The demand for a commodity affects the demand for resources required to produce the concerned commodity.

Answer 8

Expert Solution & Answer

Explanation of Solution

Goods produced in market are made up of raw materials. Demand for raw materials or intermediate goods which is made to produce final goods for consumption is called derived demand. So, derived demand is the demand made of resources which is made to produce final goods.Consumption of the final goods affects derived demand.

For example,demand for petrol leads to demand for extraction. If demand for petrol is less due to increase in price of petrol or increase in price of automobiles etc., it will lead to less extraction. On the other hand, if demand for petrol rises, it leads to increase in extraction of petrol.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Derived demand:

The demand for a good or service arising as the outcome of the demand for another good or service, is referred as derived demand.

Answer 12

Ch. 29 - Prob. 1E Ch. 29 - Prob. 2E Ch. 29 - Prob. 3E Ch. 29 - Prob. 4E Ch. 29 - Prob. 5E Ch. 29 - Prob. 6E Ch. 29 - Prob. 7E Ch. 29 - Prob. 8E Ch. 29 - Prob. 9E Ch. 29 - Prob. 10E

The demand for a commodity affects the demand for resources required to produce the concerned commodity.

To explain: The demand for a commodity affects the demand for resources required to produce the concerned commodity.

Explanation of Solution

Want to see more full solutions like this?

Chapter 29 Solutions

To explain:

The demand for a commodity affects the demand for resources required to produce the concerned commodity.