Final answer:
The demand for labor at Chick-fil-A, which increased due to the surge in chicken sales following the surgeon general's statement, is an example of derived demand, as the need for additional workers is a result of increased demand for the final product, chicken.
Step-by-step explanation:
The surgeon general's statement that eating more chicken will add three years to your life expectancy potentially shifts the demand curve for chicken rightwards, resulting in increased sales at Chick-fil-A by 20%. Consequently, management hires more workers to meet the raised demand. This scenario highlights how the demand for an input, such as labor, is derived from the demand for the final product, in this case, chicken. The increased demand for chicken, influenced by health announcements or changes in consumer tastes, creates a higher demand for the necessary inputs to produce that good, including labor.
From an economic perspective, the phenomenon described is an illustration of what is called derived demand. Derived demand occurs when the demand for an input is contingent upon the demand for the output it helps to produce. In this situation, Chick-fil-A's increased demand for workers arises not directly from the workers themselves but as a consequence of the higher demand for chicken sandwiches spurred by the health statement.