Derived Demand Best Describes the Demand for Which of the Following

question 123

Multiple Choice

Derived demand best describes the demand for which of the following options?

• A) cupcakes
• B) canned soda
• C) computer chips
• D) cat food
• E) cars

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Definitions:

Comparative Advantage

The ability of an individual or entity to produce goods or services at a lower opportunity cost than other individuals or entities.

Economic Investment

The expenditure on capital goods used to produce other goods or services in the future, contributing to a country's productive capacity.

Fermentation System

A biological process using microorganisms to convert organic materials into alcohol, gases, or acidic products.

Entrepreneur

An individual who creates a new business, bearing most of the risks and enjoying most of the rewards, often seen as an innovator and a source of new ideas, goods, services, and business/or procedures.