Business demand ultimately derives from the demand for consumer goods and services.

Question

Quizplus · Accepted Answer

Business demand is a derived demand, meaning it ultimately comes from the demand for consumer goods and services. For example, if consumers demand more cars, then there will be an increase in the demand for steel, rubber, and other materials needed to make those cars. This, in turn, will lead to an increase in the demand for those materials from businesses.

Business Demand Ultimately Derives from the Demand for Consumer Goods