The Potato Board advertises to get people to eat more potatoes. If as a result of the ad consumers eat more potatoes, then farmers must grow more potatoes. The producers of fertilizers, irrigation systems, and storage bins for potatoes must also manufacture more to satisfy the increased demand. This shows how consumer demand can trigger _____ in the business market.

Question

Quizplus · Accepted Answer

Derived demand occurs when the demand for one product or service arises from the demand for another. In this case, the increased consumer demand for potatoes leads to increased demand for related agricultural inputs and services.

The Potato Board Advertises to Get People to Eat More