Question

The derived demand curve for a product component will be more inelastic

Answer 1

Answer:

B. the more inelastic is the demand for the final product.

Explanation:

Inelastic demand occurs when demand rises by a lower percentage as compared to the percentage of the price drop.

Take for instance, if price drops by 10% and then demand only rises by 4%.

Now, the derived demand curve for a product component will be more inelastic when there's more rises by lower percentages of the final product than price drop. The more inelastic the demand for a product is, the more inelastic the demand derive curve will be.