When the Consumer Demand for Vehicle Tires Increases,the Demand for Rubber

question 19

Multiple Choice

When the consumer demand for vehicle tires increases,the demand for rubber also goes up.This increased demand for rubber due to the increase in demand for tires shows the effect of _____ on business markets.​

• A)​autonomous demand
• B)acceleration demand
• C)​concentrated demand
• D)​direct demand
• E)​derived demand

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Definitions:

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements and is used to evaluate the cost of funding projects via equity financing.

Dividend

A disbursement by a company to its shareholders, often from its profit reserves.

Growth Rate

The rate at which a company's earnings, revenue, or another financial metric increases over a specific period.

Cost of Preferred Stock

The required rate of return by investors for owning preferred stock in a company.