Question

The fact that business customers purchase products to be used directly or indirectly in the production of goods and services to satisfy customers' needs means that demand for business products is
a. joint.
b. economically stable.
c. derived.
d. inelastic.
e. more fluctuating.

Answer 1

Answer:

The correct answer is C

Explanation:

Demand for business products is referred to as the derived demand, which means that the firm or business bought the products to be used while producing the products of customer.

And a small decrease or increase in the demand of the consumer could produce the larger change in the demand for the manufacturing equipment and facilities required to make the product for consumer.

So, the needs of the customer states that the demand for the business product is derived.