Which of the Following Is the Best Example of a Derived

question 23

Multiple Choice

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

• A)an increase in the wage for yoga instructors causes an increase in the demand for yoga classes
• B)a decrease in the price of Pilates classes causes an increase in the demand for yoga classes
• C)an increase in demand for yoga classes causes an increase in demand for yoga instructors
• D)a decrease in the demand for yoga mats causes a decrease in demand for yoga classes
• E)an increase in awareness about fitness causes an increase in demand for yoga classes

---

Definitions:

Stockholders' Equity

The residual interest in the assets of an entity that remains after deducting its liabilities; also known as shareholders' equity.

Deferral

In accounting, the postponement of recognition of an expense or revenue that has been incurred or earned to a later accounting period.

Interest Payable

This is the amount of interest expense that has been incurred by a company but not yet paid to creditors.

Interest Revenue

Income earned by a company through lending money or investing in debt securities.