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

a. As income rises, the demand for TVs rises.
b. A fall in the price of cameras will increase the demand for film.
c. A fall in the demand for tires will reduce the demand for rubber.
d. When the price of gasoline rises, the demand for automobile repair falls.
e. If consumers expect the price of coffee to rise, demand for coffee rises.


C

Economics

You might also like to view...

A ________ system is one in which households pay the same percentage of their incomes in taxes regardless of their income level

A) progressive B) regressive C) proportional D) complementary

Economics

Fixed cost is sometimes called

a. total cost b. sunk cost c. variable cost d. marginal cost e. average total cost

Economics

Say's law states that demand creates its own supply

Indicate whether the statement is true or false

Economics

During World War II, prisoners of war used ________ as money

A) bullets B) cowrie shells C) chocolate D) cigarettes

Economics