Which of the Following Best Illustrates the Concept of Derived

question 240

Multiple Choice

Which of the following best illustrates the concept of derived demand?

• A) The number of retail stores in a downtown area decreases even though demand for retail goods increases.
• B) An increase in the number of new, single-family homes results from a spike in the gross national product.
• C) A Chinese plastics company decreases its output because of its customers' reduction in toy exports to the United States.
• D) A heat wave results in an increased demand for air conditioners.
• E) Honda reducing its car prices causes GM to do the same.

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Definitions:

Sexually Active

Engaging in sexual activities with one or more partners.

Nonsexual Affection

Expressions of care or love that do not involve sexual activity, such as hugging or kissing on the cheek.

Americans

Citizens or nationals of the United States of America, characterized by a diverse population with a wide range of cultural, ethnic, and political backgrounds.

Marry

The legal or formally recognized union of two people as partners in a personal relationship, historically and typically in the context of a marriage ceremony.