Which of the following is not an example of derived demand?
A)As more high school graduates go on to college, more professors are hired.
B)As consumers buy more computers, they demand more powerful computers.
C)As people let their hair grow longer, fewer people become barbers.
D)As people buy more tennis shoes instead of sandals, they buy more shoe laces.
E)Increased demand for overnight delivery speeds up orders for new delivery trucks.

Question

Which of the following is not an example of derived demand?​
A)As more high school graduates go on to college, more professors are hired.
B)As consumers buy more computers, they demand more powerful computers.
C)As people let their hair grow longer, fewer people become barbers.
D)As people buy more tennis shoes instead of sandals, they buy more shoe laces.
E)Increased demand for overnight delivery speeds up orders for new delivery trucks.

Quizplus · Accepted Answer

Derived demand refers to the demand for a factor of production or intermediate good that occurs as a result of the demand for another good or service. Option B describes a change in consumer preference for a product feature, not a derived demand.

Which of the Following Is Not an Example of Derived