Question

The derived demand for an input will rise when it is highly productive in ______. Multiple select question. increasing the costs to produce a product producing a highly valued commodity reducing the costs to produce a product producing a minimally valued commodity

Answer 1

Answer:

Tt is highly productive in reducing the costs to produce a product.

 it is highly productive in producing a highly valued commodity.

Explanation:

A product has derived demand If its demand is dependent on the demand for other products.

For example, there would be no need to demand for labour if no one demands for goods.

The derived demand for a good will increase if it reduces the price of the product and if it is important in the production of a good