An example of derived demand is the demand for:
A) housing by consumers.
B) machines by businesses.
C) paper products by households.
D) agricultural products by foreign consumers.

Question

Quizplus · Accepted Answer

Derived demand refers to the demand for a good or service that arises as a result of demand for another good or service. In this case, the demand for machines by businesses is a derived demand because businesses require machines to produce goods and services that will eventually be demanded by consumers.

An Example of Derived Demand Is the Demand For