Which of the Following Best Illustrates the Concept of Derived

question 211

Multiple Choice

Which of the following best illustrates the concept of derived demand?

• A)The number of retail stores in a downtown area decreases even though demand for retail goods increases.
• B)An increase in the number of new,single-family homes results from a spike in the gross national product.
• C)A Chinese plastics company increases its output because of its customers' higher toy exports to the United States.
• D)A heat wave results in an increased demand for air conditioners.
• E)Honda reducing its car prices causes GM to do the same.

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Definitions:

Assembly Department

A section within a manufacturing plant where components are assembled into final products.

Practical Capacity

The maximum level of work that an organization can achieve under normal working conditions.

Operation Manual

A detailed document that provides instructions on how to use a product or perform a task, typically outlining procedures, guidelines, and troubleshooting steps.

Peak Efficiency

The state of operating at maximum productivity with the least waste of resources.