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Which of the Following Is the Best Example of a Derived

Question 41

Multiple Choice

Which of the following is the best example of a derived demand?


A) A decrease in interest rates increases the demand for housing.
B) An increase in the wage rate causes firms to substitute capital for labour.
C) An increase in demand for cars will increase the demand for auto workers.
D) A decrease in the price of internet connection will increase the demand for tablet computers.
E) An increase in the price of butter increases the demand for margarine.

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