A manufacturer of consumer food products for the Chinese market in Canada buys several tons of camellia nuts annually. It converts those nuts into cooking oil that is popular among the Chinese population because it has a milder taste than olive oil and a higher burning point. The oil is sold to supermarkets. The pulp from which the oil is extracted is sold to beef cattle farmers who use it to fatten their cattle. These transactions occur in the ________market.

Question

Quizplus · Accepted Answer

The transactions occur in the industrial market because the manufacturer is buying raw materials (camellia nuts) to convert them into a product (cooking oil) for sale, and the pulp is sold as a by-product to another industry (beef cattle farming).

A Manufacturer of Consumer Food Products for the Chinese Market