When the consumer demand for vehicle tires increases,the demand for rubber also goes up.This increased demand for rubber due to the increase in demand for tires shows the effect of _____ on business markets.

Question

When the consumer demand for vehicle tires increases,the demand for rubber also goes up.This increased demand for rubber due to the increase in demand for tires shows the effect of _____ on business markets.​

Quizplus · Accepted Answer

This scenario illustrates the concept of derived demand, which 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 rubber is derived from the demand for vehicle tires.

When the Consumer Demand for Vehicle Tires Increases,the Demand for Rubber