Asked by Alier Alfonso-Ramos on May 14, 2024
Verified
Firestone carefully watches the automotive market to ascertain the demand for cars, SUVs, and trucks. Firestone does this because the demand for its products is dependent on the demand for automobiles. This situation describes __________.
A) synergistic demand
B) shopping demand
C) derived demand
D) product line demand
E) price elasticity
Derived Demand
The demand for a product or service that arises from the demand for another product or service linked to it.
Automotive Market
The sector of the economy that deals with the production, distribution, and sale of motor vehicles.
Firestone
A multinational tire manufacturing company known for producing a wide range of tires for vehicles.
- Acquire knowledge on the concept of price elasticity and its relevance in the determination of product pricing.
Verified Answer
AK
Ainaa KookieMay 15, 2024
Final Answer :
C
Explanation :
Derived demand occurs when the demand for one product or service happens as a result of the demand for another. In this case, Firestone's demand for tires is derived from the demand for automobiles.
Learning Objectives
- Acquire knowledge on the concept of price elasticity and its relevance in the determination of product pricing.
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