If consumer demand for Ford cars (a consumer product)increases,the company may increase its demand for paint-spraying equipment (a business good).This illustrates _______.
A)unit demand
B)contrived demand
C)derived demand
D)primary demand

Question

Quizplus · Accepted Answer

This illustrates derived demand, which refers to the demand for a business good that is derived from the demand of a consumer product. In this scenario, the demand for paint-spraying equipment is derived from the increased consumer demand for Ford cars.

If Consumer Demand for Ford Cars (A Consumer Product)increases,the Company