The size and number of JCPenney direct mail pieces like catalogs that are designed and mailed to consumers would determine how much paper JCPenney needs to buy.This is an example of __________.
A)derived demand
B)reciprocity
C)a tying agreement
D)derived supply
E)elastic supply

Question

Quizplus · Accepted Answer

Derived demand refers to the demand for a product or service that is created as a result of the demand for another product or service. In this case, the demand for paper by JCPenney is derived from the demand for their direct mail pieces. The size and number of these mail pieces will directly impact how much paper JCPenney needs to purchase, making it an example of derived demand.

The Size and Number of JCPenney Direct Mail Pieces Like