Discuss the link between derived demand and unemployment by providing an example from our economy.

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27-10-2018
Business

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Discuss the link between derived demand and unemployment by providing an example from our economy.

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thejavia thejavia · Answer 1 · 2018-10-27T21:41:26+02:00

The demand for labor depends on three factors, price of the product, marginal product of labor and the wage rate. It's called a derived demand because for example if the price of product goes down, the demand for labor will shift left, and cause unemployment. (ans by: https://answers.yahoo.com/activity/questions?show=26ZDOAVMQ3NZJSX4EFEDOKNL3I&t=g)