Which one of the following best illustrates the concept of derived demand?
A)A minimum wage worker tends to buy more off-brand products than do more highly paid professionals.
B)A windshield company has to step up production because auto sales are increasing.
C)A grocery store is selling more fresh fruits and vegetables.
D)Restaurant sales are rising because unemployment is falling.
E)Retail stores have increased sales around the holiday season.

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 windshield company's increased production is due to the rising demand for automobiles.

Which One of the Following Best Illustrates the Concept of Derived