Derived demand for a factor of production means that:

A) people demand factors just as they do goods.
B) the demand for factors depends on what the factor can produce.
C) the market derives a demand for factors regardless of what they produce.
D) suppliers determine what will be produced.

Derived Demand

The demand for a factor of production or intermediate good that occurs as a result of the demand for another product or service.

Factor of Production

Inputs used in the production of goods or services in the process of wealth creation, including labor, capital, land, and entrepreneurship.