Derived Demand Can Be Defined as Demand That Is

question 70

Multiple Choice

Derived demand can be defined as demand that is:

• A) independent of price.
• B) matched to consumer wants and needs.
• C) dependent on another source.
• D) highly volatile.
• E) highly responsive to factors other than price.

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Definitions:

Mark-up

The amount added to the cost price of goods to cover overhead and profit; the difference between the selling price and the cost price.

Sale Price

The final amount at which an item or service is sold after any discounts or deductions.

Operating Profit

Earnings before interest and taxes (EBIT), reflecting the profit a company makes from its operations, before financial and other non-operational costs.

Reduced Price

A lower cost for goods or services, typically offered during sales, discounts, or promotions.