Which of the Following Most Clearly Illustrates the Concept of "Derived

question 105

Multiple Choice

Which of the following most clearly illustrates the concept of "derived demand"?

• A) An increase in the price of steak causes the demand for poultry to increase.
• B) An increase in the demand for new houses leads to an increase in the demand for construction workers.
• C) An increase in consumer income leads to an increase in the demand for services provided by the government.
• D) An increase in the demand for new cars causes the demand for used automobiles to rise.

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Definitions:

French and Indian War

A conflict between Britain and France from 1754 to 1763 in North America, part of the larger Seven Years' War, involving various Native American tribes aligning with either side.

William Penn

An English Quaker leader and founder of the Province of Pennsylvania, the English North American colony and the future Commonwealth of Pennsylvania, known for implementing democratic principles and religious freedom.

Proclamation of 1763

A decree issued by King George III, restricting colonial expansion beyond the Appalachian Mountains to appease Native American tribes through the establishment of a Western boundary.

Geographical Area

A specific part of the Earth's surface identified by its physical location, boundaries, and characteristics.