Firestone is a manufacturer and marketer of tires for new passenger cars. In recent years, the company's business has declined because of the overall decrease in consumer demand for new cars. In this case, the demand for Firestone's tire products is said to be ____ since it depends on the demand for new cars.

Question

Quizplus · Accepted Answer

The demand for Firestone's tire products is derived from the demand for new cars, meaning that it is dependent on the demand for another product, in this case, new cars. Therefore, the best choice is (C) derived. The other options, such as inelastic or elastic, refer to the responsiveness of demand to price changes, which is not directly related to the situation described in the question.

Firestone Is a Manufacturer and Marketer of Tires for New