Ask Question
BusinessBusiness
3 April, 12:51

When the demand for automobiles is high, the demand for workers who build automobiles is high. This relation between the market for automobiles and the market for the labor that builds automobiles is why demand in a factor market is called:

A. the marginal productivity theory of income distribution.

B. a compensating differential.

C. a derived demand.

+4
Answers (1)
  1. 3 April, 14:46
    0
    C. a derived demand.

    Explanation:

    Derived demand is a rise in the demand of a product due to the increase in demand for related or intermediate goods. If two distinct goods or services are used together, a rise in the demand of one will cause the demand for the other to rise. Products or services used together are called complementary goods.

    Derived demand is primarily as a result of the usage of a product in the production or consumption of other goods or services. In this case, the demand for workers is solely due to a rise in the demand for cars. Should the demand for vehicles decrease, then the demand for workers will fall.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “When the demand for automobiles is high, the demand for workers who build automobiles is high. This relation between the market for ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Which of the following would have an inventory of municipal security secondary market positions? (A) The broker's broker for a firm (B) The sales representative at the retail level (C) A trader of municipal securities (D) The managing underwriter
Answers (1)
In circumstances in which there is a labor union, employees may have to allow another person to negotiate their salary increase production to reduce employer costs learn new skills or face unemployment relocate to find work that fits their skills
Answers (1)
Two alternatives, code-named X and Y, are under consideration at Guyer Corporation. Costs associated with the alternatives are listed below.
Answers (1)
In large firms that have many specialists to handle each promotion method, sales managers are primarily concerned with
Answers (1)
The goldsmith's ability to create money was based on the fact that: A) people preferred to use paper money as a medium of exchange. B) the goldsmith was required to keep 100% gold reserves. C) consumers preferred to use gold for transactions.
Answers (1)
New Questions in Business
Paper Clip Company sells office supplies. The following information summarizes the company's operating activities for the year: Utilities for the store $ 10 comma 300 Sales commissions 10 comma 300 Sales revenue 164 comma 100 Purchases of
Answers (1)
If joe were to introduce himself as dr. early to sell to gensol, knowing that people would assume that he was a medical doctor, but never tell anyone that he was, would contracts entered into be considered to be fraudulent?
Answers (1)
Which of the following are reasons the aggregate demand curve is downward sloping? Check all that apply. 1) A higher price level decreases the real value of consumers' assets.
Answers (1)
If Gerry makes a deposit of $1,500 at the end of each quarter for five years, how much will he have at the end of the five years assuming a 12% annual return and quarterly compounding?
Answers (1)
Explain how globalization influence management
Answers (1)
Home » Business » When the demand for automobiles is high, the demand for workers who build automobiles is high. This relation between the market for automobiles and the market for the labor that builds automobiles is why demand in a factor market is called: A.
Sign Up Forgot Password?