Question

Q1.
is the following statement true or false? Give Reason.
Intermediate Goods have a derived demand.
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Answer 1

Answer:

Explanation:yes, the above statement is true. Intermediate goods have derived demand.

For example: consider an ice-cream shop that sells ice cream to its customers. Milk among other goods is an intermediate good for preparing ice-cream. If the demand for ice-cream increases the demand for milk will also increase because milk is used as an ingredient in ice cream.