"Derived demand" is best illustrated by the demand for:
A) tea as a substitute for coffee.
B) brick because of increasing demand for new homes.
C) fresh raspberries during the winter months.
D) CD players because of increasing interest in CD audio discs.
E) All of these are good illustrations of derived demand.

Question

Quizplus · Accepted Answer

Derived demand refers to the demand for a good or service that arises as a result of the demand for another good or service. In this case, as the demand for new homes increases, there is a derived demand for bricks as they are needed for construction. This is the best example of derived demand given in the options provided.

"Derived Demand" Is Best Illustrated by the Demand For