Which of the following is an example of a change in derived demand?
A)The demand for ice cream increases during a heat wave.
B)The demand for large pickup trucks falls when the price of gasoline increases.
C)The demand for buns increases when the price of food truck hot dogs increases.
D)The demand for sunscreen falls when the local swimming pool increases prices.

Question

Quizplus · Accepted Answer

Derived demand occurs when the demand for one good or service happens as a result of the demand for another. In this case, the increase in demand for food truck hot dogs leads to an increased demand for buns, which are a complementary good necessary for serving hot dogs.

Which of the Following Is an Example of a Change