Directly or indirectly all business products are used to produce consumer products. Therefore, it can be said that the demand for business products is _____ demand.
A) elastic
B) nonfluctuating
C) negotiated
D) derived
E) inelastic

Question

Quizplus · Accepted Answer

The demand for business products is considered "derived" because it is directly tied to the demand for consumer products. As consumer demand increases, so does the demand for the business products needed to produce those consumer goods.

Directly or Indirectly All Business Products Are Used to Produce