What is meant by the term "derived demand"?
A)All demand in organizational markets is ultimately derived by the demand for consumer goods
B)Demand is derived by the level of consumer interest, a consumer's intention to purchase and their available capital
C)Where demand in consumer markets is ultimately derived by the level of demand in organizational markets
D)Demand is derived by the level of organizational interest, organizations intention to purchase and their available capital

Question

Quizplus · Accepted Answer

Derived demand refers to the demand for goods and services that arises from the demand for another good or service. In this context, option A correctly explains that all demand in organizational markets (for example, raw materials, machinery) is ultimately derived from the demand for consumer goods.

What Is Meant by the Term "Derived Demand