The key ingredient in artificial vanilla is vanillin, which is a byproduct for wood pulp manufacturing. Recent problems with the production of pure vanilla has led to increased sales of artificial sales, which is term has led to increased sales of the wood pulp by-product. This would be an example of:
A) reciprocity
B) derived demand
C) fluctuating demand
D) elastic demand
E) multiple buying influence

Question

Quizplus · Accepted Answer

Derived demand occurs when the demand for one product or service happens as a result of the demand for another. In this case, the increased sales of artificial vanilla, due to problems with pure vanilla production, lead to increased demand for the wood pulp by-product (vanillin), which is used in making artificial vanilla.

The Key Ingredient in Artificial Vanilla Is Vanillin, Which Is