Which of the Following Most Clearly Illustrates the Concept of "Derived

question 105

Multiple Choice

Which of the following most clearly illustrates the concept of "derived demand"?

• A) An increase in the price of steak causes the demand for poultry to increase.
• B) An increase in the demand for new houses leads to an increase in the demand for construction workers.
• C) An increase in consumer income leads to an increase in the demand for services provided by the government.
• D) An increase in the demand for new cars causes the demand for used automobiles to rise.

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