Which of the Following Statements Best Illustrates the Concept of Derived

question 111

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.

---

Definitions:

Referent Power

The influence one possesses based on others' admiration or respect towards them, often leveraging the desire of others to identify and be associated with the person.

Informational Power

Power derived from possessing knowledge or information that others find useful or valuable.

Skills And Abilities

The competences and capabilities that enable an individual to perform tasks or activities effectively.

Facts And Data

Objective pieces of information that are proven to be true and can be quantified or verified.