📚 Learning Guide
Derived Demand for Labor
easy

A local bakery increases its production of pastries due to a rise in customer demand. What category does the demand for additional bakers fall into?

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Learning Path

Question & Answer
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Choose the Best Answer

A

Derived Demand

B

Direct Demand

C

Inverse Demand

D

Independent Demand

Understanding the Answer

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Answer

The demand for additional bakers in the bakery is an example of derived demand for labor. This means that the need for bakers comes from the increase in demand for pastries, not from a direct need for bakers themselves. When more customers want pastries, the bakery needs to produce more, which requires hiring more bakers to meet that demand. For instance, if the bakery usually sells 100 pastries a day but sees an increase to 200 pastries due to customer requests, they will need to hire extra bakers to help make those additional pastries. Therefore, the increase in pastry demand drives the need for more bakers, illustrating how labor demand can depend on the demand for products.

Detailed Explanation

When more pastries are needed, the bakery needs more bakers. Other options are incorrect because Some might think direct demand means needing workers directly; Inverse demand suggests that as prices go up, demand goes down.

Key Concepts

Derived Demand for Labor
Market Demand
Employment Trends
Topic

Derived Demand for Labor

Difficulty

easy level question

Cognitive Level

understand

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