Derived Demand Refers to

question 23

Multiple Choice

Derived demand refers to

• A)demand curves derived from utility functions
• B)an individual demand curve estimated from a market demand curve
• C)a market demand curve estimated from individual demand curves
• D)demand for a resource derived from the demand for the product produced by that resource
• E)demand for a product derived from the demand for the resource used to make that product

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Definitions:

Market Rate

The prevailing interest rate available in the marketplace on investments or loans.

Sinking Funds

A fund formed by periodically setting aside money for the gradual repayment of a debt or replacement of a wasting asset over time.

Bondholders

Individuals or entities who hold the debt securities issued by corporations or governmental entities, thereby lending them money in return for interest payments and the repayment of principal.

Interest Rates

This refers to the cost of borrowing money or the reward for saving money, expressed as a percentage of the principal over a period.