The success of one company in one industry may depend on another company in a different industry. This dependence creates ________.

Question

Quizplus · Accepted Answer

The dependence between companies in different industries creates derived demand, where the demand for one company's product or service is derived from the demand for another company's product or service. In this case, the success of one company is dependent on the success of another company. Inelastic demand refers to a situation where changes in price have very little effect on the quantity demanded, while value-added demand refers to demand that is increased by adding value to a product or service. Inelasticity and elasticity refer to the degree to which changes in price affect the quantity demanded.

The Success of One Company in One Industry May Depend