Which of the following is the best example of a derived demand?
A)an increase in the wage for yoga instructors causes an increase in the demand for yoga classes
B)a decrease in the price of Pilates classes causes an increase in the demand for yoga classes
C)an increase in demand for yoga classes causes an increase in demand for yoga instructors
D)a decrease in the demand for yoga mats causes a decrease in demand for yoga classes
E)an increase in awareness about fitness causes an increase in demand for yoga classes

Question

Quizplus · Accepted Answer

In this scenario, the demand for yoga instructors is dependent on the demand for yoga classes. If there is an increase in demand for yoga classes, then there will be an increase in demand for yoga instructors to teach those classes. This is an example of derived demand, where the demand for one good/service is dependent on the demand for another good/service.

Which of the Following Is the Best Example of a Derived