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:

Emotions

Complex psychological states that involve physiological and cognitive responses to certain stimuli.

Researchers

Individuals who conduct systematic investigations and studies to establish facts and reach new conclusions, typically in scientific or academic fields.

Cognitive Dissonance

The mental discomfort experienced by a person who holds two or more contradictory beliefs, ideas, or values at the same time.

Major Categories

Broad, primary divisions or classes within a system or field of study, used to organize related subcategories or items.