An example of derived demand in the auto industry is the demand for
A) new automobiles.
B) used automobiles.
C) auto workers.
D) drivers' insurance.

Question

Quizplus · Accepted Answer

The demand for auto workers is a derived demand in the auto industry because it is not the final product in demand but rather the labor necessary to produce the final product, which is new or used automobiles. The demand for auto workers is dependent on the demand for automobiles.

An Example of Derived Demand in the Auto Industry Is