Question 23
Theory of DemandA commodity is said to have derived demand when it
- A.has a joint demand with another commodity
- B.is demanded by the rich only
- C.is demanded for immediate consumption.
- D.is demanded because of what it can help to produce.
Show the answer and explanation
Answer: D (is demanded because of what it can help to produce.)
Explanation
Derived demand is demand for a thing because of the goods it helps to produce.