APFIVE Characteristics of Derived Demand
All of the following statements about derived demand are true except:
A
Derived demand is the demand for a factor of production, due to the demand for the final product.
B
Shifts in consumer preferences can indirectly affect the demand for production inputs through derived demand.
C
The level of derived demand for labor is influenced by changes in the demand for the product the labor helps produce.
D
Derived demand refers to the demand for goods produced for direct consumer satisfaction.