Five Star Windows (FSW) manufactures high-quality, energy-efficient windows for homes and offices.The number of windows sold is directly linked to the number of new homes built.The sales of FSW's windows go up when the economy is strong and many homes are being built.This information reveals that the demand for FSW's windows is an example of _____.

Question

Quizplus · Accepted Answer

Derived demand means that demand for industrial goods and services is driven by, or derived from, the demand for consumer products.In this case, the demand for windows is a derived demand as it is driven by the consumer demand for new houses.

Five Star Windows (FSW) Manufactures High-Quality, Energy-Efficient Windows for Homes