________ accurately exemplifies the derived nature of industrial demand.
A)Decline in beef consumption because of the movement of health-conscious consumers toward poultry products.
B)A reduction in demand for feed grains because of a decline in beef consumption.
C)Increase in industrial demand throughout the economy because of advanced production technology.
D)Decrease in paper prices because of excess timber production in the Northwest.

Question

Quizplus · Accepted Answer

The reduction in demand for feed grains is an example of derived demand because it is ultimately tied to the decline in beef consumption. As consumers shift away from beef, the demand for feed grains used to feed cattle decreases. This, in turn, affects the demand for other products in the supply chain, illustrating the derived nature of industrial demand. Options A, C, and D do not relate to derived demand.

________ Accurately Exemplifies the Derived Nature of Industrial Demand