Inland Eastex Inc.manufactures paper that is used for printing covers for different types and sizes of magazines.The percentage of magazine sales determines how much paper Inland Eastexwill produce each year.This is an example of _____ demand.

Question

Inland Eastex Inc.manufactures paper that is used for printing covers for different types and sizes of magazines.The percentage of magazine sales determines how much paper Inland Eastexwill produce each year.This is an example of _____ demand.​

Quizplus · Accepted Answer

Derived demand is the demand that exists for a product or service as a result of the demand for another related product or service. In this scenario, the demand for paper is derived from the demand for magazine covers. Therefore, C is the correct choice. Joint demand refers to the demand for two or more products that are used together, inelastic demand is when the quantity demanded does not significantly change with a change in price, and elastic demand is when the quantity demanded significantly changes with a change in price. None of these concepts apply to the given scenario.