Hewlett- Packard and Dell buy Intel microprocessor chips because consumers buy personal computers.This demonstrates an economic principle called .

Question

Quizplus · Accepted Answer

Derived demand refers to the principle that the demand for a particular product (Intel microprocessor chips in this case) is derived from the demand for another product (personal computers in this case). In other words, the demand for Intel chips is dependent on the demand for personal computers, since the chips are used in the production of computers. Therefore, the fact that Hewlett-Packard and Dell buy Intel microprocessor chips demonstrates the principle of derived demand.

Hewlett- Packard and Dell Buy Intel Microprocessor Chips Because Consumers