In recent years,large equipment manufacturers such as Caterpillar and Komatsu have focused on the mining industry as a major growth area.However,in recent months the mining industry is showing signs of a recession and mines around the world are reducing their output and laying off workers.Due to the decline in sales of raw materials coming from the mine,Caterpillar has experienced a decline in sales of mining equipment.Which of the following best describes the demand for Caterpillar equipment in the mining industry?

Question

Quizplus · Accepted Answer

The demand for Caterpillar equipment in the mining industry is derived because it depends on the demand for raw materials extracted from the mines. As the mining industry declines, so does the demand for mining equipment.

In Recent Years,large Equipment Manufacturers Such as Caterpillar and Komatsu