Which of the Following Is the Best Example of a Derived

question 40

Multiple Choice

Which of the following is the best example of a derived demand?

• A)An increase in the wage rate causes firms to substitute capital for labour.
• B)A decrease in the price of internet connection will increase the demand for tablet computers.
• C)An increase in the price of butter increases the demand for margarine.
• D)An increase in demand for cars will increase the demand for auto workers.
• E)A decrease in interest rates increases the demand for housing.

---

Definitions:

Breach Of Contract

The failure to fulfill the terms of a contract without lawful excuse, which may lead to legal action.

Acceptance Of Offer

The action by which the recipient of an offer agrees to the terms of the offer, creating a legally binding contract between the parties.

International Sale Of Goods

Transactions involving the commercial exchange of goods between sellers and buyers from different countries, governed by international agreements and laws.

United Nations

An international organization founded in 1945, composed of sovereign states, aimed at promoting peace, security, and cooperation among nations.