Derived demand is demand:
A)from consumers for new goods and services.
B)from manufacturers to find new customers.
C)linked to the production and sale of some other item.
D)as specified by governmental orders.

Question

Quizplus · Accepted Answer

Derived demand is created when the demand for one good or service is created as a result of the demand for another related good or service. In this case, the demand is linked to the production and sale of some other item, which means that the demand for one product or service is dependent on the demand for another. Options A, B, and D do not adequately define derived demand.

Derived Demand Is Demand