If consumer demand for Ford cars (a consumer product)increases, the company may increase its demand for paint-spraying equipment (a business good). This illustrates ________.
A)derived demand
B)unit demand
C)contrived demand
D)primary demand

Question

Quizplus · Accepted Answer

This scenario illustrates derived demand, where the demand for a business good (paint-spraying equipment) is dependent on the demand for a consumer product (Ford cars) that uses the business good in its production process.

If Consumer Demand for Ford Cars (A Consumer Product)increases, the Company