EBK PRINCIPLES OF MICROECONOMICS (SECON
2nd Edition
ISBN: 9780393616149
Author: Mateer
Publisher: W.W.NORTON+CO. (CC)
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Question
Chapter 14, Problem 1QR
To determine
Describe the derived
Expert Solution & Answer
Explanation of Solution
Derived demand is an increased demand for factors of production due to an increase in the demand for the product. The derived demand is not a direct consumer demand, but the demand derived from the increasing consumer’s demand in a particular commodity. Also, this increased demand in consumer good will ultimately increase the demand for its factor of production.
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Chapter 14 Solutions
EBK PRINCIPLES OF MICROECONOMICS (SECON
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Similar questions
- Question What will be the demand of inputs when the input price depends on the demandarrow_forwardYou are given a scenario where this a change in a factor of production or a change in demand for an item. You need to explain in sentence form how this would change demand for labor. You own a sports equipment manufacturing firm. You were just informed rent at your warehouse space would double.arrow_forwardIf the demand for soccer tickets increases, why would an economist expect the salaries of soccer players to increase? because of the reduction in the supply of world-class soccer players because of the demand for an input being a derived demand because of the change in the opportunity cost of building new stadiums because of the principle of diminishing marginal productarrow_forward
- What is meant by an inferior factor of production? How would the firm’s demand for labour be altered if labour were an inferior factor of production?arrow_forwardThe lines on the graph are budget constraints, showing the tradeoff between labor and leisure. Suppose that when the wage changes, an individual chooses to move from point A to another point on the graph. For each of the other points, where would it belong on the backward bending labor supply curve? Backward‑bendingportionVerticalportionUpward‑slopingportion Answer Bank B D F C Earrow_forwardConsider an economy with 20 workers. If the marginal product of labor (MPL) is 13 and the market price (P) is $6, what isthe value of the marginal product of labor (VMPL)? Provide your answer below:arrow_forward
- The information below is for a competitive labor market. A. Calculate the value of the marginal product of labor at X. B. Find the equilibrium wage. C. Find the equilibrium quantity of labor employed.arrow_forwardYou are given a scenario where this a change in a factor of production or a change in demand for an item. You need to explain in sentence form how this would change demand for labor. There is an increase in the price of steel. You make tractors.arrow_forwardQ. 1 Analyze and graph the Product Effect and the Substitution Effect in labor demand in the face of an increase in labor price.arrow_forward
- From the table below, what can you infer is the market price? Value of the Marginal Product of Labor Labor Total product (# of Marginal Product of Labor (MPĻ) Value of the Marginal Product of Labor (VMPĻ) input (# of workers) goods) 1 9. 9. $90 17 8. $80 3 22 $50 4 25 3 $30 5 26 1 $10 Provide your answer below:arrow_forwardIdentify the segment that represents the payment for factors or resources like labor. (Click directly on the corresponding letter) Goods and A H Service Market Households E Factors market F D Firms B C Garrow_forwardWhat is the difference between factor cost and market price? According to macro economics?arrow_forward
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