Goodyear is a manufacturer and marketer of tires for new passenger cars. In recent years, the company's business has declined because of the overall decrease in consumer demand for new cars. In this case, the demand for Goodyear's tire products is said to be ____ since it depends on the demand for new cars.

Question

Quizplus · Accepted Answer

The demand for Goodyear's tire products is said to be derived since it depends on the demand for new cars. Derived demand refers to when the demand for a certain product or service is dependent on the demand for another product or service. In this case, the demand for new cars is the driving force for the demand for tires, so Goodyear's tire products are considered to have derived demand. None of the other options accurately describe the relationship between the demand for new cars and the demand for Goodyear's tire products.

Goodyear Is a Manufacturer and Marketer of Tires for New