The demand for factors of production is an example of?
Answer Details
The demand for factors of production is an example of derived demand.
Factors of production are resources used in the production process, including land, labor, capital, and entrepreneurship. The demand for these factors of production is not direct but derived from the demand for the goods and services that they produce.
For instance, when the demand for a particular product increases, firms would require more factors of production, such as labor and capital, to increase the production of the product. Similarly, when the demand for a product decreases, firms would require fewer factors of production.
Therefore, the correct answer is "derived demand."