Which of the Following Best Illustrates the Concept of Derived

Multiple Choice

Which of the following best illustrates the concept of derived demand?

A) The number of retail stores in a downtown area decreases even though demand for retail goods increases.
B) An increase in the number of new,single-family homes results from a spurt in the gross national product.
C) A Chinese plastics company increases its output because of its customers' higher toy exports to the United States.
D) A heat wave results in an increased demand for air conditioners.
E) Honda reducing its car prices causes GM to do the same.