Specialized bicycles may increase the demand for Shimano gears if there is an increase in consumer demand for specialized mountain bikes. This illustrates __________.
A)contrived demand
B)secondary demand
C)derived demand
D)primary demand

Question

Quizplus · Accepted Answer

Derived demand refers to the demand for a product that is derived from the demand for a related or interconnected product. In this scenario, the demand for specialized mountain bikes (related product) leads to an increase in demand for Shimano gears (interconnected product), which is an example of derived demand.

Specialized Bicycles May Increase the Demand for Shimano Gears If