The demand for ________ is a ʺderived demand.ʺ
A) hot chocolate on a cold day
B) U.S. Treasury bonds
C) a dog groomer by a grooming shop
D) hot dogs on the 4th of July

Question

Quizplus · Accepted Answer

Derived demand refers to the demand for goods or services that arises not from the direct demand for the goods or services themselves but as a result of the demand for another good or service. In this case, the demand for a dog groomer by a grooming shop is a derived demand because it arises from the demand for dog grooming services by pet owners, not from a direct demand for the groomers themselves.

The Demand for ________ Is a ʺDerived Demand.ʺ