Demand for the lithium ion batteries used in the production of Tesla automobiles is
A) perfectly elastic.
B) unrelated to their productivity.
C) an output demand.
D) derived from the demand for Tesla automobiles.

Question

Quizplus · Accepted Answer

The demand for lithium ion batteries used in Tesla automobiles is derived from the demand for Tesla automobiles themselves. This is because these batteries are a necessary component for the production of the cars, so as demand for Tesla cars increases, so does the demand for the batteries they require.

Demand for the Lithium Ion Batteries Used in the Production