A well-known food retailer buys a lot of cranberry products in December due to seasonally high consumer demand. This is an example of ________ demand.

Question

Quizplus · Accepted Answer

Derived demand refers to the demand for a product that arises from the demand for another product or service. In this case, the retailer is buying cranberry products because there is high consumer demand for them during the holiday season. The demand for cranberry products is derived from the demand for holiday food items, such as cranberry sauce, that are typically consumed during this time of year.

A Well-Known Food Retailer Buys a Lot of Cranberry Products