Which One of the Following Best Illustrates the Concept of Derived

question 35

Multiple Choice

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

• A)Retail stores have higher sales around the holiday season than in other seasons of the year.
• B)Restaurant sales are rising because unemployment is falling.
• C)A windscreen company has to step up production because motor vehicle sales are increasing.
• D)A grocery store is selling more fresh fruits and vegetables because people are improving their diets.
• E)A minimum wage worker tends to buy more home-brand products than do more highly-paid professionals.

Analyze the effects of government policies on market prices and quantities.

Identify the impact of consumer preferences and seasonal changes on the demand for products.

Evaluate the effects of income changes on the demand for goods.

Understand the relationship between goods' prices and the demand for complementary and substitute products.

---

Definitions:

Balance Sheet

A financial statement that provides a snapshot of a company's assets, liabilities, and equity at a specific point in time.

Bill of Materials

A comprehensive list of materials, components, and instructions required to construct, manufacture, or repair a product or service.

Direct Material

Raw materials that are directly attributed to the production process and are a significant component of the finished product.

Actual Overhead Costs

The real costs incurred for overhead in a specific period, which may differ from budgeted or estimated overhead costs.