Derived Demand Refers to

question 172

Multiple Choice

Derived demand refers to

• A)a graph relating the quantity sold and price,which shows the maximum number of units that will be sold at a given price.
• B)the demand for industrial products and services that is driven by the demand for consumer products and services.
• C)the relationship between total revenue and total cost to determine profitability at various levels of output.
• D)the point on a demand curve where supply and demand intersect.
• E)the percentage change in quantity demanded relative to a percentage change in price.

---

Definitions:

Monthly Payments

Regular payments made over a specified period of time, often used in the context of loan repayments or rental agreements.

Times Interest Earned

A financial metric indicating how well a company can cover its debt payments, by comparing its earnings before interest and taxes against its interest expenses.

Income Before Taxes

A company’s total earnings or profit before income tax expense has been deducted.

Interest Expense

The charges an entity must pay for the use of borrowed capital over a period.