Concert Staging Company (CSC) provides the stage, roof system, lighting, and sound for outdoor concerts and theatres.The frequency of concerts and theatre events conducted depends on the customers' decisions to purchase the tickets.The number of concerts and theatre events determine how many times CSC gets an opportunity to provide its services.Thus, the demand for the services provided by CSC is a(n) _____ demand.

Question

Quizplus · Accepted Answer

Derived demand means that the demand for industrial products and services is driven by, or derived from, demand for consumer products and services.The demand for Concert Staging Company services is driven by the sales of tickets to concert/theatre attendees, so it is a derived demand.

Concert Staging Company (CSC) Provides the Stage, Roof System, Lighting