Which of the Following Is the Best Example of a Derived

question 39

Multiple Choice

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

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

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Definitions:

Common-size Statement

A financial statement in which each line item is expressed as a percentage of a significant total, facilitating comparison with other companies or periods.

Percentage of Sales

A financial ratio that compares a company’s various expenses, investments, or profits as a percentage of total sales.

Greatest Use of Funds

The most efficient or impactful way in which an organization chooses to allocate and use its financial resources.

Accounts Receivable

Refers to the money owed to a company by its customers for goods or services already delivered but not yet paid for.