Specialized bicycles may increase the demand for Shimano gears if there is an increase in consumer demand for specialized mountain bikes.This illustrates _______.
A)derived demand
B)contrived demand
C)secondary demand
D)primary demand

Question

Quizplus · Accepted Answer

Derived demand refers to the demand for a product or service that is driven by the demand for another product or service. In this case, the demand for specialized bicycles is driving the demand for Shimano gears, indicating derived demand. Contrived demand refers to the creation of demand through advertising or other promotional strategies, which is not applicable in this scenario. Secondary demand refers to the demand for complementary products, while primary demand refers to the overall demand for a particular product category, neither of which precisely fits this example.

Specialized Bicycles May Increase the Demand for Shimano Gears If