Derived Demand Means

question 18

Multiple Choice

Derived demand means:

• A)consumer demands.
• B)demand added to other demand.
• C)demand from supply.
• D)when firms demand an input, they do so because that input permits them to produce a good which consumers desire.
• E)none of the above.

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Definitions:

Incremental Cash Inflow

The additional amount of cash generated by a company from its operations, investments, or financial activities.

Net 30 Credit Policy

A common trade credit that allows buyers 30 days to pay the invoice in full after receiving goods or services.

Monthly Interest Rate

The percentage of interest that is charged or earned on an investment or loan on a monthly basis.

Default Rate

The rate at which borrowers fail to make required payments on their loans or credit obligations.