Consumer demand has dramatically increased for home-based solar panels.As a result,manufacturers are seeing increased demand for the raw materials and components to construct the solar panels.This type of demand is known as:

Question

Quizplus · Accepted Answer

Derived demand refers to the demand for goods and services that are necessary to produce the end product. In this case, the end product is home-based solar panels, and the manufacturers are experiencing an increased demand for the raw materials and components needed to produce them. This is an example of derived demand because it is a result of the demand for the end product, rather than the demand for the raw materials and components themselves.

Consumer Demand Has Dramatically Increased for Home-Based Solar Panels