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Hot Coffee Inc

Question 12

Multiple Choice

Hot Coffee Inc.hires workers and buys coffee roasting machines so it can serve fresh roasted coffee to its customers.The demand for ________ is a derived demand because ________.


A) both workers and roasting machines; both are used to produce and sell coffee
B) only workers; there is a limited number of people willing to work in coffee shops
C) only roasting machines; capital equipment can be resold in other markets
D) neither workers nor roasting machines; derived demand only applies to actual products produced for customers
E) only workers; workers can actually negotiate their wages

Correct Answer:

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