When the economy is sluggish, final consumers have less money to buy their favorite computer gadgets, and this causes touch-screen manufacturers to sell less product to computer makers like Apple. This illustrates the concept of:
A) "Product" as potential customer satisfaction.
B) derived demand.
C) brand non-recognition.
D) brand rejection.
E) unsought products.

Question

Quizplus · Accepted Answer

Derived demand refers to the demand for one product that results from the demand for another related product. In this case, the demand for touch-screens is derived from the demand for computers, so a sluggish economy reducing consumer spending on computers ultimately leads to less demand for touch-screens.

When the Economy Is Sluggish, Final Consumers Have Less Money