Sky High Camping offers overnight camping in tree houses built on its 10-hectare property. Workers are hired to build and maintain the tree houses. Which of the following are true statements? i. The land and the trees grown are considered natural resources.
Ii) The demand for trees and land is not a derived demand because supply is limited.
Iii) The demand for workers is considered a derived demand because they help produce the service of tree-house camping.

Question

Quizplus · Accepted Answer

- i) is true because the land and the trees grown are natural resources that are being utilized by Sky High Camping for their business.
- ii) is not true because the demand for trees and land is a derived demand since they are used to build and maintain the tree houses for the camping service.
- iii) is true because the workers are needed to produce the service of tree-house camping, making their demand derived.

Sky High Camping Offers Overnight Camping in Tree Houses Built