Business demand is derived demand because it ultimately derives from the demand for consumer goods.

Name: Business demand is derived demand because it ultimately derives from the demand for consumer goods.
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Question

Quizplus · Accepted Answer

Business demand is dependent on the demand for consumer goods as businesses produce goods and services that are demanded by consumers. Therefore, the demand for consumer goods directly affects the demand for business products and services. Hence, business demand is derived demand.

Business Demand Is Derived Demand Because It Ultimately Derives from the Demand