Green Enterprises builds custom cabinets for new homes. The demand for these cabinets is a derived demand.

Question

Quizplus · Accepted Answer

Derived demand refers to the demand for a good or service that results from the demand for another good or service. In this case, the demand for custom cabinets by Green Enterprises is derived from the demand for new homes. When more new homes are being built, there is a higher demand for custom cabinets to furnish those homes.

Green Enterprises Builds Custom Cabinets for New Homes