When the Toyota Prius first entered the marketplace, dealers made waiting lists of the people who wanted one and the factories had to ramp up production and order more raw materials. This is an example of derived demand.

Question

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This statement is true. The demand for the Toyota Prius was derived from the consumer demand for fuel-efficient and environmentally friendly cars. As a result, dealers had waiting lists and factories had to increase production, leading to a derived demand for raw materials.

When the Toyota Prius First Entered the Marketplace, Dealers Made