The demand for a factor of production is said to be derived demand because :

1.It is a function of the profitability an enterprise
2. It depends on the supply of complementary factors
3. It stems from the demand for the final product
4. It arises out of means being scarce in relation to wants
Which of the above reasons is/are correct?
(a) 1 only
(b) 3 only
(c) 2 and 4 only
(d) 1, 2, 3 and 4

Anurag Mishra Professor Asked on 12th January 2016 in Economics.
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    Answer: (c) 2 and 4 only 

    Anurag Mishra Professor Answered on 13th January 2016.
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