Which of the following is not an example of derived demand?
A)As more high school graduates go on to college, more professors are hired.
B)As consumers buy more computers, they demand more powerful computers as they become available.
C)As people let their hair grow longer, fewer people become barbers.
D)As people buy more tennis shoes instead of sandals, they buy more shoe laces.
E)Increased demand for overnight delivery speeds up orders for new delivery trucks.

Question

Quizplus · Accepted Answer

This is an example of direct demand as consumers are directly demanding more powerful computers as they become available. Derived demand refers to the demand for a good or service that is derived from the demand for another good or service, such as the demand for professors being derived from the demand for education. Choices A, C, D, and E are all examples of derived demand.

Which of the Following Is Not an Example of Derived