Asked by
Chris Hakim
on Nov 26, 2024Verified
Which of the following statements best illustrates the concept of derived demand?
A) As income goes up, the demand for farm products will increase by a smaller relative amount.
B) A decline in the price of margarine will reduce the demand for butter.
C) A decline in the demand for shoes will cause the demand for leather to decline.
D) When the price of gasoline goes up, the demand for motor oil will decline.
Derived Demand
The demand for a good or service that arises from the demand for another good or service. For example, the demand for steel is derived from the demand for automobiles.
Margarine
A spread used for flavoring, baking, and cooking that is made from vegetable oils and is considered a butter substitute.
- Comprehend the principle of derived demand and its examples.
Verified Answer
BA
Learning Objectives
- Comprehend the principle of derived demand and its examples.
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