The linkage between the demand for automobile tires and sales of automobiles is an example of:
A) derived demand
B) co-demand
C) joint demand
D) fabricated demand

Question

Quizplus · Accepted Answer

Derived demand refers to the demand for a product that arises from the demand for another product. In this case, the demand for automobile tires is derived from the demand for automobiles. As more automobiles are sold, there is a corresponding increase in the demand for automobile tires to replace worn-out or damaged tires.

The Linkage Between the Demand for Automobile Tires and Sales