Question on: JAMB Economics - 2024

The demand for factors of production (land, labor, capital, and entrepreneurship) is derived demand. This means the demand for these factors is dependent on the demand for the goods and services they produce. A firm will only demand a factor of production if there is a demand for the final product that factor helps create.

• Derived demand is the correct answer because it accurately reflects the relationship between factor demand and the demand for the goods/services they produce.
• Joint demand refers to when two or more goods are demanded together (e.g., cars and gasoline).
• Complementary demand is closely related to joint demand, emphasizing the usage of goods together.
• Composite demand refers to a good having multiple uses.