The demand for labour in an economy is a depiction of

Step 1: Analyze the question The question asks what type of demand "demand for labour" is. This is about the nature of demand for factors of production.

Step 2: Explain the concept Labour is not wanted for its own sake by firms. Firms hire workers because workers help produce goods and services that consumers want. So the demand for labour depends on (is derived from) the demand for the final product.

Types of demand in economics:

• Competitive demand: demand for goods that are substitutes (e.g., Milo and Bournvita).
• Composite demand: demand for a good with several uses (e.g., electricity for lighting, cooking, and industry).
• Complementary (joint) demand: demand for goods used together (e.g., car and fuel).
• Derived demand: demand for something because of the demand for the product it helps make (e.g., labour, raw materials, machinery).

Step 3: Apply it When Nigerians demand more bread, bakers need more bakers, flour, and ovens. The demand for bakery workers rises because of the demand for bread. For this reason, the demand for labour is a derived demand.

Step 4: Answer The correct option is E. derived demand.

Tip: Think "factors of production = derived demand." If the item is an input (labour, land, capital, raw materials) rather than a final consumer good, the demand for it is derived from the demand for the goods it produces. "Deductive" is not an economics demand type, so you can eliminate it right away.