Question

_____ reflects the link between consumers' demand for a company's product and the company's purchase of necessary inputs to manufacture or assemble that particular product.

A) Institutional purchasing demand
B) Distribution
C) Derived demand
D) Wholesaling
E) Reselling demand

Answer 1

Derived demand reflects the link between consumers' demand for a company's product and the company's purchase of necessary inputs to manufacture or assemble that particular product.

Step-by-step explanation:

Derived demand is the correct answer. Derived demand reflects the link between consumers' demand for a company's product and the company's purchase of necessary inputs to manufacture or assemble that particular product. When consumers have a higher demand for a product, the company needs to increase its purchase of inputs to meet that demand.

For example, if there is an increase in the demand for cars, the automobile companies will need to purchase more steel, rubber, and other materials to produce those cars. Therefore, the demand for these materials is derived from the demand for cars.