When the demand for packaged beer fell by 8 percent in one year, the demand for aluminum beer cans and glass beer bottles also fell. This demand for beer containers is an example of which type of demand?

Question

Quizplus · Accepted Answer

The demand for beer containers is an example of derived demand, which is the demand for a good or service that arises from the demand for another good or service. In this case, the demand for beer drives the demand for beer containers, whether they be aluminum cans or glass bottles. The fact that the demand for the containers fell along with the demand for beer suggests that the demand is derived instead of fluctuating, inelastic, or elastic.

When the Demand for Packaged Beer Fell by 8 Percent