Which of the Following Best Illustrates the Concept of "Derived

question 95

Multiple Choice

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

• A)An increase in the wages of auto workers will lead to an increase in the demand for robots in automobile factories.
• B)An automobile producer's decision to supply more cars will lead to an increase in the demand for automobile production workers.
• C)An automobile producer's decision to supply more minivans results from a decrease in the demand for station wagons.
• D)An increase in the price of gasoline will lead to an increase in the demand for small cars.

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Definitions:

Employment Discrimination

The unfair or prejudicial treatment of individuals in the workplace based on race, gender, age, religion, nationality, or other non-merit factors.

Innovation

The act of converting a concept or innovation into a product or service that generates value or is something customers are willing to purchase.

Thomas Friedman

An American journalist, author, and three-time Pulitzer Prize winner known for his work on globalization and the modern world economy.

Immigration

Moving to a different country with the intent to reside there indefinitely.