Weston makes uniforms and overalls for employees in any industry where there is a potential for 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 such 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 is an example of derived demand, which refers to the demand for a product or service that occurs as a result of demand for another product or service. In this case, the demand for the uniforms is derived from the demand for employees in industries where there is a potential for fire injury. The decrease in demand for products in the chemical industry leads to a decrease in employment, which ultimately leads to a decrease in the demand for such uniforms.

Weston Makes Uniforms and Overalls for Employees in Any Industry