Multiple Choice
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.
Correct Answer:
Verified
Correct Answer:
Verified
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