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The concept of derived demand shows that as the demand for a product goes up,
(A) the price of the product goes up.
(B) the government’s tax revenue goes up.
(C) the quantity of the product sold goes down.
(D) the demand for public goods goes up.
(E) the demand for labor to make the product goes up.
Which of the following is an example of derived demand?
(A) When the price of strawberries falls, the quantity demanded rises.
(B) When the demand for cars increases, the demand for car workers increases.
(C) When the price of donuts falls, the demand for muffins decreases.
(D) When the demand for cookies increases, the demand for milk increases.
(E) When the supply of gold increases, the demand for gold rings increases.
Wage rate is the price paid per unit of labor services, can be hours of work
The wage rate of a product can affect the supply of labor. When demand of labor increases it is likely that the supply will also increase. The wage rate of workers must decrease in order to increase the supply
The Movie, The Social Network, follows the start up of Facebook. The Founder of the website realized that they had more and more schools want to be part of their social network. The site was becoming more popular and it was time for them to expand to more colleges, and it was time to get more investors. The creator of the site along with his roommates could not expand by themselves so they must hire more interns.
1:18-1:34
Eventually the team moved out to california and the founder, Mark Zuckerberg, started a large company for Facebook
3.
(a).i.The demand for labor decreases and the equilibrium wage rate falls
ii.The quantity of labor demanded equals the quantity of labor supplied and the number of workers looking for a job unemployed would be zero
(b).i.a minimum wage that is effective will increase the wage rate and decrease the quantity of workers employed
ii.The number of workers looking for jobs increases
(c).The derived demand of labor comes from the demand for the product. The increase in demand for goods will result in an increase in demand for labor in Bazra. The quantity of workers employed will increase.
Supply:a schedule showing the amounts of a good or service that sellers will offer at various prices during some period
Demand:a schedule showing the amounts of a good or service that buyers wish to purchase at various prices during some time period
With an increased derived demand for Labor the supply would go up if production increases. The demand of labor is being determined by the demand of the product in the concept of derived demand.
Derived demand: the demand for a resource is derived from the demand for the products that the resource helps to produce
Derived demand is not the Law of Demand
Law of Demand: as price of product increases, the quantity demanded falls