Which of the following best illustrates the concept of "derived demand"?
A) A decrease in the price of glass causes the demand for plastic to decrease.
B) An increase in the demand for bread leads to an increase in the demand for flour.
C) A decrease in the price of air travel leads to an increase in the quantity demanded of air travel.
D) An increase in the demand for peanut butter leads to an increase in the demand for jelly.

Question

Quizplus · Accepted Answer

Derived demand occurs when the demand for one good or service occurs as a result of the demand for another. In this case, the demand for flour is derived from the demand for bread.

Which of the Following Best Illustrates the Concept of "Derived