What Is Meant by Derived Demand

question 79

Multiple Choice

What is meant by derived demand?

• A) The demand is derived from income, tastes, etc. of sellers.
• B) The demand for a resource is derived from the demand for what it can produce.
• C) The demand is derived from the price elasticity of demand.
• D) The demand exists because the government mandates production of the good.
• E) The demand for a good is derived from the supply of the good.

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Definitions:

Null Hypothesis

A default hypothesis that there is no significant difference or effect, used as a starting point for statistical testing.

Type I Error

A Type I error occurs when a true null hypothesis is incorrectly rejected.

Rejecting

The act of not accepting or dismissing a statistical hypothesis based on the analysis of data.

Level of Significance

The threshold probability used in hypothesis testing to determine whether to reject the null hypothesis.