Which one of the following best illustrates the concept of derived demand?
A)Retail stores have higher sales around the holiday season than in other seasons of the year.
B)Restaurant sales are rising because unemployment is falling.
C)A windscreen company has to step up production because motor vehicle sales are increasing.
D)A grocery store is selling more fresh fruits and vegetables because people are improving their diets.
E)A minimum wage worker tends to buy more home-brand products than do more highly-paid professionals.

Question

Quizplus · Accepted Answer

The increased demand for motor vehicles is leading to an increased demand for windshields, illustrating the concept of derived demand. The other options do not directly relate to a change in demand for a specific product or service due to changes in demand for another product or service.

Which One of the Following Best Illustrates the Concept of Derived