As one moves further away from the consumer market,derived demand can cause wide swings in demand,called
A) Inelasticity
B) Volatility
C) Make-or-buy
D) Deficiency
E) Dissolution

Question

Quizplus · Accepted Answer

Derived demand is the demand for a product that arises because of the demand for a related product. This related product may be a consumer good or an industry good. As one moves further away from the consumer market, the derived demand can cause wide swings in demand, which is called volatility. In other words, changes in demand for an industry good can have a significant impact on the demand for the related product. This can lead to volatile demand patterns for the related product.

As One Moves Further Away from the Consumer Market,derived Demand