Which of the Following Is the Best Example of a Derived

question 41

Multiple Choice

Which of the following is the best example of a derived demand?

• A)A decrease in interest rates increases the demand for housing.
• B)An increase in the wage rate causes firms to substitute capital for labour.
• C)An increase in demand for cars will increase the demand for auto workers.
• D)A decrease in the price of internet connection will increase the demand for tablet computers.
• E)An increase in the price of butter increases the demand for margarine.

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Definitions:

FAB Step

stands for Features, Advantages, and Benefits, a technique used in sales and marketing to effectively communicate the value of a product to potential customers.

SELL Sequence

An acronym or model outlining a systematic approach to selling that typically includes steps like Show features, Explain benefits, Lead into advantages, and Let customers speak.

Business Proposition

An offer or plan presented to a person or group with details about benefits and costs, aiming to persuade or inform the receiver towards making a business decision.

Marketing Plan

A strategic blueprint that outlines a company's overall marketing efforts, including objectives, market analysis, strategies, and tactics.