Derived demand is more likely to impact a single firm that markets:
A) Substitute products
B) Complementary products
C) Generic products
D) Fighting brands
E) All business products

Question

Quizplus · Accepted Answer

Derived demand refers to the demand for a product or service that arises as a result of the demand for another product or service. Complementary products are products that are used together with another product. For example, if the demand for cars increases, then the demand for gasoline, car insurance, and local mechanic services also increase. Therefore, a firm that markets complementary products is more likely to be impacted by derived demand.

Derived Demand Is More Likely to Impact a Single Firm