Author Question: Which of the following most clearly illustrates the concept of derived demand? a. An increase in ... (Read 264 times)

arivle123 · **on:** Jun 30, 2018

Which of the following most clearly illustrates the concept of derived demand?
a. An increase in the price of steak causes the demand for poultry to increase.
b. An increase in the demand for new houses leads to an increase in the demand for construction workers.
c. An increase in consumer income leads to an increase in the demand for services provided by the government.
d. An increase in the demand for new cars causes the demand for used automobiles to rise.

Question 2

_____ is the only type of firm where it is possible for a person to hold all of the information that matters for all types of decisions.
a. Corporation
b. A firm where decision-making is centralized
c. Sole proprietorship
d. A firm where there is separation of ownership and management