Weston makes uniforms and overalls for employees in any industry where there is a risk of fire injury.It uses fabric from Indie Fabric Co.for all of the uniforms it manufactures.If there is a decrease in the demand for products in the chemical industry,then there will be a decrease in employment in that industry.This will lead to a decrease in the demand for Weston's uniforms.Since fewer uniforms will be needed,the sales for Indie Fabric will decrease.This is an example of:
A) derived demand.
B) a competitive advantage for the seller.
C) economies of scale in marketing.
D) just-in-time (JIT)inventory control.
E) a direct demand.

Question

Quizplus · Accepted Answer

This scenario is an example of derived demand, which is when the demand for one product or service is derived from the demand for another product or service. In this case, the demand for Weston's uniforms is derived from the demand for employment in the chemical industry, which then affects the demand for Indie Fabric's fabric.

Weston Makes Uniforms and Overalls for Employees in Any Industry