Question

Chapter 3.

40. How do you suppose the demographics of an aging population of “Baby Boomers” in the United States will affect the demand for milk? Justify your answer.

Chapter 4.

21. Other than the demand for labor, what would be another example of a “derived demand?”

Answer 1

1) the baby boomers are those who born in between 1946-1964. the population born in that era are definitly the older generation in recent periods.in the united states the baby boomers consist around 29% of the total population and  the aging population means the population above the average age are increasing with respect to the total population so as we as a matter of fact  the demand for milk is high amongst kids or the younger peoples and  as the population of aging groups is increasing there will be lesser demand for the milk. due to this factor as the demand for milk will decline the demand curve for milk will also shift backward and the price for milk will go down if supply remains constant.

2)derive demand is a demand for goods and services not for direct consumption but for production. the inter mediate goods, sometimes finished or semi finished are also goods that are demanded to complete a product. for example the fabric cotton is demanded more in the season of summers because people like to wear cotton clothes in summer.so the cotton fabric here is a derived demand which is being demanded to make cotton clothe.