A trade association of raw material refiners devotes 20 percent of its overall budget to stimulate final consumer usage. This illustrates derived demand.

Question

Quizplus · Accepted Answer

Derived demand occurs when the demand for a product or service results from the demand for another product or service. In this case, the trade association's efforts to stimulate consumer usage of final products indirectly increases the demand for raw materials, illustrating derived demand.

A Trade Association of Raw Material Refiners Devotes 20 Percent