In which of the following scenarios is "derived demand" most evident?

In which of the following scenarios is "derived demand" most evident?

• A. The demand for textbooks fluctuating during a school year
• B. The demand for printers based on the usage of printing paper
• C. The demand for new cars based on an increase in gas prices
• D. The demand for premium coffee due to a rise in café openings

Answer: (B)

Derived demand refers to the demand for a good or service that is a consequence of the demand for another related good or service. In this case, the demand for printers is directly influenced by the usage of printing paper. If there is a high demand for printing paper, it indicates that more printing is needed, which leads to an increased demand for printers. This relationship illustrates how one product's demand (printers) is derived from the demand for another product (printing paper). Understanding this concept is crucial for marketers, as it helps them anticipate changes in market demand based on related goods and can inform inventory decisions, marketing strategies, and supply chain management. In this scenario, the interdependence of demand between printers and printing paper clearly exemplifies derived demand.

Derived demand refers to the demand for a good or service that is a consequence of the demand for another related good or service. In this case, the demand for printers is directly influenced by the usage of printing paper. If there is a high demand for printing paper, it indicates that more printing is needed, which leads to an increased demand for printers. This relationship illustrates how one product's demand (printers) is derived from the demand for another product (printing paper).

Understanding this concept is crucial for marketers, as it helps them anticipate changes in market demand based on related goods and can inform inventory decisions, marketing strategies, and supply chain management. In this scenario, the interdependence of demand between printers and printing paper clearly exemplifies derived demand.