Inland Eastex Inc. manufactures paper that is used for printing covers for different types and sizes of magazines. The percentage of magazine sales determines how much paper Inland Eastexwill produce each year. This is an example of _____ demand
a. joint
b. inelastic
c. derived
d. elastic
ANSWER: c
Inland Eastex Inc. manufactures paper for magazines depending on the demand for each magazine. This is an example of derived demand. The demand for business products is called derived demand because organizations buy products to be used in producing their customers' products.
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