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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. Correct Answer Incorrect Answer
B An increase in the number of new single family homes results from a spurt in the gross national product. Correct Answer Incorrect Answer
C The heat wave results in an increased demand for air conditioners. Correct Answer Incorrect Answer
D Jet engine manufacturers experience increased sales because more tourists are taking international vacations. Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

Solution

Sales of industrial products (jet engines) frequently result from the sale of consumer service

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