Which of the following statements best illustrates the concept of derived demand?
A. As income goes up, the demand for farm products will increase by a smaller relative
amount.
B. A decline in the price of margarine will reduce the demand for butter.
C. A decline in the demand for shoes will cause the demand for leather to decline.
D. When the price of gasoline goes up, the demand for motor oil will decline.
Answer: C
Economics
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Indicate whether the statement is true or false
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Magic Cookies Inc made a profit of $800,000 last year and paid $100,000 as taxes. This is an example of a(n) _____
a. capital gains tax b. corporate income tax c. excise tax d. personal property tax
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