Inland Eastex manufactures a heavy paper stock that is used for printing covers for many different consumer magazines. Consumer magazine sales determine how much paper Inland Eastex sells. This is an example of which type of demand?

Question

Quizplus · Accepted Answer

The scenario described here is an example of derived demand, which refers to the demand for a product or service that results from the demand for another product or service. In this case, the demand for Inland Eastex's heavy paper stock is derived from the demand for consumer magazines, which use the paper for their covers.

Inland Eastex Manufactures a Heavy Paper Stock That Is Used