Which of the Following Statements Best Illustrates the Concept of Derived

question 25

Multiple Choice

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

• A) As income goes up, the demand for farm products will increase by a smaller relative amount.
• B) A decline in the price of margarine will reduce the demand for butter.
• C) A decline in the demand for shoes will cause the demand for leather to decline.
• D) When the price of gasoline goes up, the demand for motor oil will decline.

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Definitions:

Payment Amounts

The sums of money paid or to be paid for goods, services, or obligations.

Group Health Plans

Insurance plans that provide healthcare coverage to a group of members, typically employees of the same company or organization.

Third-Party Payer

A third-party payer is an entity (other than the patient or healthcare provider) that pays for healthcare services, often an insurance company or government program.