A company that manufactures door hinges used by GM in its car doors gets increased orders from GM because more consumers are demanding GM vehicles.This illustrates ________ for this __________.
A)derived demand; prestige good
B)primary demand; unsought good
C)secondary demand; shopping good
D)derived demand; production good

Question

Quizplus · Accepted Answer

The situation described in the scenario is an example of derived demand, where the demand for one product (the door hinges) is derived from the demand for another product (GM vehicles). Additionally, the door hinges are a production good, as they are used in the process of manufacturing cars. Therefore, the best choice is D - derived demand; production good.

A Company That Manufactures Door Hinges Used by GM in Its