An increase in consumer demand for soft drinks leads to an increased demand by soft drink producers for components/ingredients such as aluminum cans and high-fructose corn syrup, resulting in an increased demand by manufacturers and farmers for aluminum ore and corn. This sentence best illustrates:

Derived demand is used to describe demand for goods or services as a result of demand for related goods or services. Derived demand is demand placed on a good or service as a result of its capacity to produce another good or service. Here increase or decrease in demand for goods or services will affect increase or decrease in demand for other goods or services.

osondumartins osondumartins · Answer 2 · 2020-02-22T05:34:01+01:00

Options: A. Fluctuating Demand

B. Derived Demand C. Elastic Demand D. Joint Demand.

Answer:B. Derived Demand

Explanation: Derived Demand is an increase in demand for a product or sets of products or services as a result of an increase in demand for another related or similar product or services.

The rise in the Demand for soft drinks leads to a corresponding increase in the demand for soft drink producers for components/ingredients such as aluminum cans and high-fructose corn syrup, the rise in demand for Aluminium cans,high-frutose corn syrup is a derived Demand as a result of the increased demand for soft drinks.