Spruceland Millworks in Canada makes wooden pallets for transporting and storing new appliances such as stoves, freezers, and refrigerators. The demand for Spruceland pallets would be classified as

A. inelastic demand, which is tied to the cost of the components of the pallets.
B. derived demand, which is tied to the sales of appliances.
C. reactive demand, which is tied to the sales of appliances, not the sale of the pallets.
D. unitary demand, which is tied to the sales of appliances.
E. elastic demand, which is tied to the cost of the components of the pallets.


Answer: B

Business

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