Question

Paula has developed a successful business selling appliances to homebuilders. She carefully monitors the issuance of new home permits to anticipate how many appliances she will need to buy in order to supply her customers. Paula is concerned with __________ demand.
a) modified
b) secondary
c) rebut
d) derived
e) delayed

Answer 1

Answer:

d) derived

Explanation:

Derived demand is when a supplier is interested in a product not for itself, but for other associated products.

Paula is interested in New homes that are being constructed not because of the homes themselves, but she wants to sell electronics the new home owners.

It is similar to joint demand and complimentary demand as increase in one product leads to increase in the other.

The more houses being built the more electronics Paula will sell.