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

Question

Quizplus · Accepted Answer

Derived demand refers to the demand that arises from the demand for another product or service. In this case, the demand for the Toyota Prius (the product) created a derived demand for raw materials and increased production (the service).

When the Toyota Prius First Entered the Marketplace,dealers Kept Waiting