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. As the price of coffee increases, the quantity demanded for coffee declines.
c. A boom in the housing market leads to an increase in the demand for lumber and electricians.
d. An increase in beer advertising on television leads to an increase in per capita beer consumption.
C
You might also like to view...
In a closed economy:
A) consumption is equal to zero. B) investment is equal to zero. C) government spending is equal to zero. D) net exports is equal to zero. In a closed economy, without the government, the consumption expenditure equals $5,000 and the investment expenditure equals $2,000.
Suppose that the amount of computer printers demanded increases by 20 percent when the price of personal computers falls by 10 percent. The cross price elasticity of demand between computer printers and personal computers is
A) 0.5. B) -2.0. C) -0.5. D) 2.0.
Ling-Temco-Vought (LTV) is an example of
a. a conglomerate. b. a vertical merger. c. a horizontal merger. d. a limited-liability partnership.
Antitrust policies are a set of measures which are taken to liberate the economy from unnecessary governmental controls
a. True b. False Indicate whether the statement is true or false