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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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