Derived demand means the demand for industrial products and services is driven by, or derived from, the
A) NAICS statistical models.
B) gross national product.
C) demand for consumer products and services.
D) demand for industrial products in other categories or markets.
E) demand for government products and services.

Question

Quizplus · Accepted Answer

Derived demand refers to the demand for industrial products and services that is driven by the demand for consumer products and services. When consumers demand more of a product, businesses need more raw materials and services to produce those products, thus increasing the demand for industrial goods.

Derived Demand Means the Demand for Industrial Products and Services