When recycling wood from demolition lumber, recyclers use a magnetized conveyor belt system. One of the leading manufacturers of such a system is Mastermag. Mastermag sales increase when the market price for recycled iron increases and decrease when the market price for recycled iron declines. The demand for the Mastermag magnetic system is:
A) Tangible
B) Inelastic
C) Homogeneous
D) Derived
E) Static

Question

Quizplus · Accepted Answer

The demand for the Mastermag magnetic system is derived because it depends on the demand for recycled iron. As the market price for recycled iron changes, it affects the demand for the system.

When Recycling Wood from Demolition Lumber, Recyclers Use a Magnetized