Etruscan Railing Company makes railing that is used in sports arenas,nursing home corridors,amusement parks,and many other places that are not as obvious.Its railing is moulded into bicycle racks.Governments use the railing to make walkways over ravines and creek banks safer for pedestrian traffic.Hospitals use the railing in their physical therapy departments,to keep the lines straight in the hospital cafeteria,and to prevent patients from falling out of hospital beds.
-Refer to Etruscan Railing Company.Etruscan has experienced a strong increase in railing sales as a result of the growth of university football.What is the name for this increase in the demand for railings as a result of the demand for new football stadiums?

Question

Quizplus · Accepted Answer

The increase in demand for railing as a result of the growth of university football is an example of derived demand. This is because the demand for railings is derived from the demand for new football stadiums and the need to provide safe and secure spaces for spectators. Derived demand refers to the demand for a product that is driven by the demand for another product or service.

Etruscan Railing Company Makes Railing That Is Used in Sports