Which of the Following BEST Illustrates the Concept of Derived

question 228

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 spurt 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.

---

Definitions:

Maverick Buying

The practice of making unauthorized purchases outside of agreed procurement policies and contracts.

Talented Member

Refers to an individual within a group or organization who possesses exceptional skills, abilities, or knowledge.

Innovations

The introduction of something new, such as a method, idea, or device, that creates value or solves a problem.

Requisition

A formal request or demand for something needed, typically used within organizations for procuring goods or services.