GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An example of derived demand is
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Car
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Money
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Cigarette
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Mobile Phone
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Explanation:
Detailed explanation-1: -Prospectors needed to buy picks and shovels to mine for gold.
Detailed explanation-2: -d) An increase in demand for movie tickets causes an increase in the demand for movie theatre workers. This is the best answer because derived demand generally refers to the demand for a factor of production rather than another good.
Detailed explanation-3: -Demand for money means demand for holding cash. Unlike demand for consumer goods, money is not demanded for its own sake. It is due to these two functions that money is considered as indispensable by the society. Therefore, demand for money is a derived demand.
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