Which of the following best captures the factors distinguishing the demand for consumer goods from the demand for business products?

Question

Quizplus · Accepted Answer

The demand for consumer goods and business products differs in the following ways:
- Derived demand: Business products are purchased for the purpose of producing other goods or services, while consumer goods are purchased for personal consumption. Therefore, the demand for business products is derived from the demand for the final goods or services that they help produce.
- Inelastic demand: The demand for business products tends to be more inelastic than the demand for consumer goods. This is because business products are often necessary inputs in the production process, and businesses may have limited alternatives.
- Joint demand: Business products are often demanded jointly with other goods or services, while the demand for consumer goods is more independent.
Therefore, choice D is the best answer as it includes all three factors that distinguish the demand for consumer goods from the demand for business products.

Which of the Following Best Captures the Factors Distinguishing the Demand