Regarding the demand for business products,
A) Demand for business products is derived from the demand for final consumer products.
B) The demand facing most individual firms is fairly inelastic.
C) Industry demand is generally highly elastic.
D) All of these alternatives are correct.

Question

Quizplus · Accepted Answer

Demand for business products is derived from the demand for final consumer products. This means that the level of demand for a business product depends on the demand for the final consumer product it is used in. Therefore, the demand for business products is not independent of demand for consumer products, and it is not highly elastic at the industry level. The demand facing individual firms may vary, but in general, it is fairly inelastic as businesses need these products to operate.

Regarding the Demand for Business Products