1) Which of the following statements regarding the concept of “derived demand” i
ID: 419882 • Letter: 1
Question
1) Which of the following statements regarding the concept of “derived demand” is true?
Large industrial firms derive their demand from the smaller firms in the market.
Individual consumers and families derive their demand based on the industrial market.
Industrial (business to business) firms ultimately derive their demand from the consumer market.
All of the above are true.
2)Which of the following examples illustrates “cognitive dissonance”?
Gracie buys a Sony-of-my-Owny 350DX digital camera, but a day later wonders if she purchased the right camera for her situation.
Fred would really like to have a flat-screen plasma TV one day, but as of now cannot afford to buy it.
Julio thinks that Gateway makes the best laptop PC, but his wife Maria thinks that the Dell laptop is better.
All of the above.
a.Large industrial firms derive their demand from the smaller firms in the market.
b.Individual consumers and families derive their demand based on the industrial market.
c.Industrial (business to business) firms ultimately derive their demand from the consumer market.
d.All of the above are true.
Explanation / Answer
1. The answer is given below:
d. All of the above
The derived demand is where starting from manufacturing till completion the process would get involved and ensure to reach the market and customers. The customer needs are derived from the industry, the larger firm derive their demand from smaller industry and business derive the demand from the consumers.
2. The answer is given below:
d. All of the above
The cognitive dissonance is a thought, belief etc where that helps to decide on a situation or a change. So it depend according to the individual to decide on their decision towards purchasing.
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