Question

question 3
1 pts
the term \derived demand\ refers to
the demand for financial products called derivatives.
a firms estimated demand curve derived from sales data.
a demand curve that derives from the availability of resources.
the demand for a factor of production that is derived from the demand for the good the factor produces.

question 4
1 pts
an increase in the demand for orthodontic services leads to
a rise in the rates of dental insurance.
an increase in the supply of orthodontists.
an increase in the demand for orthodontists.
lower prices for orthodontic care.

Explanation:

• Question 3:
• Derived demand is a concept in economics. It is not about financial derivatives (which are a different financial instrument).
• It is not just a firm's estimated demand curve from sales data.
• It is not about a demand curve derived from resource availability.
• The correct definition is that it is the demand for a factor of production (like labor, capital) that comes from the demand for the good or service that factor produces. For example, if the demand for cars (the final good) increases, the demand for auto - workers (a factor of production) also increases.
• Question 4:
• An increase in the demand for orthodontic services (the final service) leads to an increase in the demand for orthodontists (the factor of production that provides the service).
• A rise in dental insurance rates is not a direct result of increased demand for orthodontic services. Insurance rates are influenced by many factors like cost of care, risk assessment, etc.
• An increase in demand for a service does not directly cause an increase in the supply of the providers (orthodontists). Supply is influenced by factors like the cost of education, entry barriers, etc.
• Lower prices for orthodontic care would occur if there was an increase in supply or a decrease in demand, not an increase in demand.

Answer:

• Question 3: the demand for a factor of production that is derived from the demand for the good the factor produces.
• Question 4: an increase in the demand for orthodontists.