PRC-3 · Chapter 7 · Question 43 of 72
The demand for industrial steel rises significantly only because the consumer demand for new cars has skyrocketed. What is the economic term for the demand for industrial steel in this scenario?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Derived demand
Explanation
Industrial products typically exhibit derived demand, meaning the demand for them is derived entirely from the demand for the final consumer goods they are used to make.
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