PRC-3 · Chapter 10 · Question 43 of 70
The demand for bricks, cement, and construction cranes only exists because there is a high demand for building new houses. This type of demand is economically classified as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Derived demand
Explanation
Derived demand is demand for a factor of production or intermediate good that occurs purely as a result of the demand for the final good it produces.
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