PRC-3 · Chapter 10 · Question 11 of 70
Which of the following best describes 'Derived Demand'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The demand for industrial steel caused by a surge in demand for new buildings
Explanation
Derived demand occurs when the demand for one good (steel) is purely driven by the demand for the final product it is used to produce (buildings).
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