In a rent-to-own agreement, the title to the house remains with the landlord until the tenant exercises his or her option and purchases the property. In other words, the starting point of this kind of an arrangement is a tenancy, not a house purchase transaction.
True or false: Derived demand is demand for producer resource/ labor inputs to be used indirectly to satisfy consumer demand in the production of final goods and services. Recall that improvements in the quality of a variable resource increase its marginal productivity and therefore its demand.
â¢ Quantity demanded of the good that is produced by a firm: As demand for labour is a derived demand, fluctuations in the quantity demanded of the good that the employer is producing will indeed have effects on the demand for workers to produce that good. â¢ The price of other factors of production: Assume steel (capital) prices go up.