The amount of pulp and paper products that MacMillan Bloedel manufactures is influenced by consumer demand for newspapers, Pizza Pizza's "keep warm" pizza-to-go boxes, Federal Express packages, and disposable diapers. This is an example of:
A)the price-quality relationship.
B)price elasticity.
C)the acceleration principle.
D)derived demand.

Question

Quizplus · Accepted Answer

The statement describes how consumer demand for certain products (newspapers, pizza boxes, packages, diapers) ultimately leads to the demand for pulp and paper products produced by MacMillan Bloedel. This is an example of derived demand, where the demand for one product is derived from the demand for another product.

The Amount of Pulp and Paper Products That MacMillan Bloedel