Which of the Following Best Illustrates the Concept of Derived

question 22

Multiple Choice

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

• A)The number of retail stores in a downtown area decreases and demand for retail goods increases.
• B)An increase in the number of new single-family homes results from a spurt in the gross national product.
• C)The heat wave results in an increased demand for air conditioners.
• D)Container ship manufacturers experience an increase in sales because more products are demanded from Asia to be sold in the U.S.and must be transported by ship.
• E)Honda's reducing its car prices causes GM to do the same.

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Definitions:

Guidance

The process of directing, influencing, or providing advice to others in their decisions or actions.

Catharsis

The process of releasing and thereby providing relief from strong or repressed emotions.

Altruism

The selfless concern for the well-being of others, often leading to acts of kindness without expectation of reward.

Black Friday

An annual event in the United States and increasingly worldwide, known as a major shopping day with significant discounts, following Thanksgiving Day.