BP drills and refines crude oil into petroleum for vehicles, which it sells through its retail gas stations. What kind of demand is there for BP's gasoline?

Question

Quizplus · Accepted Answer

Derived demand refers to the demand for a good or service that results from the demand for another good or service. In this case, the demand for BP's gasoline is derived from the demand for transportation and the use of vehicles that require gasoline to operate.

BP Drills and Refines Crude Oil into Petroleum for Vehicles