Ultimately, the amount of steel sold to General Motors depends on the consumers' demand for GM cars and trucks. From the standpoint of the steel manufacturer, which of the following demand forms is most pertinent?

Question

Quizplus · Accepted Answer

Derived demand refers to the demand for one product being dependent on the demand for another product. In this case, the demand for steel is derived from the demand for General Motors cars and trucks. Therefore, from the standpoint of the steel manufacturer, understanding the derived demand is the most pertinent factor in predicting sales to General Motors.

Ultimately, the Amount of Steel Sold to General Motors Depends