Business demand that ultimately comes from the demand for consumer goods is known as ________ demand.

Question

Quizplus · Accepted Answer

Business demand is derived from the demand for consumer goods because businesses produce goods that are ultimately consumed by consumers. Therefore, the demand for the products of businesses is dependent on the demand for the finished goods by consumers, making it a derived demand. Negative demand refers to a situation where consumers actively avoid a product or service. Primary demand refers to the demand for an entire product category, rather than a specific brand or product. Consumer demand refers to the demand from end-users, as opposed to businesses. Elastic demand refers to a situation where a small change in price leads to a significant change in the quantity demanded.

Business Demand That Ultimately Comes from the Demand for Consumer