question archive Which of the following is not an example of derived demand? A
Which of the following is not an example of derived demand? A
Subject:EconomicsPrice:2.88 Bought3
Which of the following is not an example of derived demand?
A. Increased demand for overnight delivery speeds up orders for new delivery trucks.
B. As people let their hair grow longer, fewer people become barbers.
C. As more high school graduates go on to college, more professors are hired.
D. As consumers buy more computers, they demand more powerful computers as they become available.
E. As people buy more tennis shoes instead of sandals, they buy more shoe laces.
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The answer is D.
A demand is derived demand if the consumer's demand for the good changes because of changes in demand for a related good. In A), demand for trucks is derived from the demand for delivery services use trucks as means of transportation. In B), demand for Barber is derived from individuals' desire for a haircut. In C), demand for professors comes from demand for higher education.
In B), demand for computers and more powerful computers come from the same source, which is individual's demand for technology. Hence, in this case, demand is not derived.
