Wooden Lifestyles is a manufacturer of household furniture.If consumers are not buying its furniture,then there is no need for the company to purchase lumber.This indicates that the demand for lumber is __________.

Question

Quizplus · Accepted Answer

The situation described in the question indicates that the demand for lumber is derived demand - its demand is derived from the demand for finished products that use lumber as an input, such as household furniture. If the demand for furniture goes down, then the demand for lumber as an input for furniture would also go down.

Wooden Lifestyles Is a Manufacturer of Household Furniture