Question

Which of the following best illustrates the concept of derived demand?

A The number of retail stores in a downtown area decreases and demand for retail goods increases.
B An increase in the number of new single family homes results from a spurt in the gross national product.
C The heat wave results in an increased demand for air conditioners.
D Jet engine manufacturers experience increased sales because more tourists are taking international vacations.
E None of these
Practice Next

Relevant for Exams:

Hey! Ask a query

🎓
Think You're Ready for RBI Grade B?
RBI Grade B 2026 Phase 1 Memory Based Paper
  • 200 Questions with Detailed Solutions
  • Section-wise Coverage (GA, English, Quant & Reasoning)