A Level Economics (9708)•9708/13/O/N/21

Explanation
Diagrams show Y as input driving demand for X
Steps:
- Identify diagrams depicting production where Y serves as a resource for producing X.
- Observe demand for Y fluctuating based on X's market demand.
- Confirm no direct consumer interaction between X and Y.
- Link this to indirect demand derivation in production chains.
Why C is correct:
- Derived demand occurs when demand for an input (Y) arises from demand for the output (X) it helps produce, per standard microeconomic theory.
Why the others are wrong:
- A: Complements require simultaneous consumer use of X and Y, not evident in production-focused diagrams.
- B: Substitutes involve competitive consumption of X and Y, unrelated to input-output links.
- D: Joint supply implies X and Y co-produced simultaneously, opposite of Y enabling X.
Final answer: C
Topic: Price elasticity, income elasticity and cross elasticity of demand
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