The demand for labour is a________

1. Analyze the question The question asks what type of demand the demand for labour is. This is about the classification of demand in Economics.

2. Explain the concept Types of demand:

• Derived demand: demand for a good or factor because it is needed to produce something else. The demand depends on the demand for the final product.
• Joint (complementary) demand: demand for goods that are used together, such as car and fuel, or bread and butter.
• Composite demand: demand for a good that has several different uses, such as electricity (lighting, cooking, industry) or steel.

3. Step-by-step solution

• Employers do not hire workers for their own sake. They hire them to produce goods and services.
• If people want more bread, bakers will hire more bakery workers. If demand for bread falls, the demand for bakery workers falls too.
• So the demand for labour depends on the demand for the product that labour helps to produce.
• This is the definition of derived demand.

Checking the other options:

• B and C (joint/complementary demand) refer to goods demanded together, not a factor of production demanded because of a final product.
• D (composite demand) refers to one good with many uses, which does not fit labour here.

4. Answer The correct option is A. Derived demand.

5. Exam tip Remember: all factors of production (labour, land, capital) have derived demand, because they are wanted for what they produce. If you see "factor demand" in JAMB, think "derived".