When consumer demand for vehicle tires increases, the demand for rubber also goes up. This increased demand for rubber due to the increase in demand for tires shows the effect of _____ on business markets.
A) derived demand
B) acceleration demand
C) concentrated demand
D) autonomous demand
E) direct demand

Question

Quizplus · Accepted Answer

Derived demand occurs when the demand for one product or service arises due to the demand for another related product or service. In this case, the increase in demand for vehicle tires leads to an increase in demand for rubber, which is a direct example of derived demand.

When Consumer Demand for Vehicle Tires Increases, the Demand for Rubber