Which of the following is the best example of a derived demand?
A)a decrease in the price of Pilates classes causes an increase in the demand for yoga classes
B)an increase in awareness about fitness causes an increase in demand for yoga classes
C)an increase in the wage for yoga instructors causes an increase in the demand for yoga classes
D)an increase in demand for yoga classes causes an increase in demand for yoga instructors
E)a decrease in the demand for yoga mats causes a decrease in demand for yoga classes

Question

Quizplus · Accepted Answer

A derived demand refers to the demand for a good or service that arises as a result of the demand for another good or service. In this case, an increase in demand for yoga classes (good or service) would cause an increase in demand for yoga instructors (another good or service). Thus, option D is the best example of a derived demand.

Which of the Following Is the Best Example of a Derived