The demand for freight:
A) originates when the carrier asks for the business
B) starts when the shipper calls the railroad to provide equipment to move a shipment
C) is a derived demand based on the demand for products
D) is based upon government quotas

Question

Quizplus · Accepted Answer

Freight demand is a derived demand, which means it is based on the demand for products. When shippers demand more products, there is an increase in the demand for freight to transport those products. The other choices are not correct - A is incorrect because carriers don't usually ask for business, shippers reach out to them; B is incorrect because the shipper's call initiates the transportation, but it doesn't create the demand for it; D is incorrect because government quotas can affect the supply of certain goods, but they don't directly create demand for freight.

The Demand for Freight