In the following figure, the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation.Figure 14.2
In the figure,
D: Demand curve for automobiles
S 1 : Supply curve of automobiles prior to regulation
S 2 : Supply curve of automobiles after regulation
FG: Clean up cost per unit
-Which of the following goods is likely to have a derived demand?
A)Tractor
B)T-shirt
C)Italian food
D)Residential buildings
E)Cigarettes

Question

In the following figure, the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation.Figure 14.2
  In the figure,
D: Demand curve for automobiles
S 1 : Supply curve of automobiles prior to regulation
S 2 : Supply curve of automobiles after regulation
FG: Clean up cost per unit
-Which of the following goods is likely to have a derived demand?
A)Tractor 
B)T-shirt 
C)Italian food 
D)Residential buildings 
E)Cigarettes

Quizplus · Accepted Answer

The demand for tractors is derived from the demand for agricultural products, as tractors are used in farming to produce these goods.

In the Following Figure, the First Panel Shows a Market