In the following figure, the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation.Figure 14.2
In the figure,
D: Demand curve for automobiles
S 1 : Supply curve of automobiles prior to regulation
S 2 : Supply curve of automobiles after regulation
FG: Clean up cost per unit
-Goods which are demanded to produce something else are said to have a(n):
A)direct demand.
B)composite demand.
C)derived demand.
D)joint demand.
E)inelastic demand.

Question

In the following figure, the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation.Figure 14.2
  In the figure,
D: Demand curve for automobiles
S 1 : Supply curve of automobiles prior to regulation
S 2 : Supply curve of automobiles after regulation
FG: Clean up cost per unit
-Goods which are demanded to produce something else are said to have a(n):
A)direct demand. 
B)composite demand. 
C)derived demand. 
D)joint demand. 
E)inelastic demand.

Quizplus · Accepted Answer

The Answer is C

In the Following Figure, the First Panel Shows a Market