Which of the following is the best example of a derived demand?
A) a decrease in the demand for yoga mats causes a decrease in demand for yoga classes
B) an increase in the wage for yoga instructors causes an increase in the demand for yoga classes
C) a decrease in the price of Pilates classes causes an increase in the demand for yoga classes
D) an increase in awareness about fitness causes an increase in demand for yoga classes
E) an increase in demand for yoga classes causes an increase in demand for yoga instructors

Question

Quizplus · Accepted Answer

A derived demand refers to the demand for a product or service that arises as a result of demand for another product or service. In this case, the demand for yoga instructors is directly derived from the demand for yoga classes, as yoga instructors are necessary for conducting those classes. Hence, an increase in demand for yoga classes causes an increase in demand for yoga instructors.

Which of the Following Is the Best Example of a Derived