MKL Inc.processes wheat into flour, which is sold to bakeries and pasta makers.What kind of demand exists for MKL Inc.'s flour?

Question

Quizplus · Accepted Answer

Derived demand means that the demand for industrial products and services is driven by, or derived from, demand for consumer products and services.The demand for flour is driven by consumer demand for pasta and baked goods, so in this case the demand for flour is a derived demand.

MKL Incprocesses Wheat into Flour, Which Is Sold to Bakeries and and Pasta