Eco 365 Week Two Dq

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The demand for labor is a “derived demand.” What does that mean? Explain how this derived demand depends on the productivity of a worker and the value of the product produced by a worker. Use the terms “average productivity,” “marginal productivity,” and “the law of diminishing marginal productivity” in your explanation. Provide examples that consider issues like: • the impact of consumer demand on a product for the demand for labor that produces that product; • the impact of different kinds of labor skills on the demand for a particular level of labor skill; • on the impact of additional other resources (like capital or land) on the demand for labor that produces a product; and • The impact of technological innovation (including skill-oriented, knowledge-oriented, and device-oriented innovation). Derived demand is a term used in economic analysis that describes a physical or intangible thing where a market exists for both related goods and services in question. The derived demand can have a significant impact on the derived good's market price. Also the demand from another good can be an excellent investing strategy. The only example that I can think of is picks and axes during the gold rush, the demand for gold prompted prospectors to search for gold. These prospectors needed picks, axes and other supplies to mine for gold. Those who were in the business of selling supplies to these prospectors faired better during the gold rush then the prospectors did. The demand for picks and axes was derived, to a large degree, from the demand for gold at that time. The key is the change in the price of the final product brought about by the shift in demand for it. If the demand curve for picks and axes shifts to the right and the upwardly sloping supply curve remains unchanged, then the equilibrium price and quantity in the picks and axes market will
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