Question

International Paper (IP), the world’s biggest producer of containerboard, supplies about 50 percent of the cardboard boxes used to package and ship Amazon’s merchandise. Amazon’s orders from IP depend on its own customer orders, so the demand for IP’s boxes is called ________ demand.

Answer 1

Derived Demand.

Step-by-step explanation:

This can be defined in economics as the demand for a product or service that occurs as a result of the high demand for another final good or service.

For example, as a result of increasing demand in their food, Mcdonalds has a derived demand for employees. Which is only possible because more people are buying burgers.