Question

Anderson Windows is the manufacturer of high-quality, energy-efficient windows for homes and offices. The number of windows sold is directly linked to the number of new homes being built. When the economy is strong and many homes are being built, Anderson sells lots of windows; when few homes are being built, few windows are sold. This is an example of:

Answer 1

The correct answer is letter "A": derived demand.

Step-by-step explanation:

Derived demand is a term describing a type of demand that has a directly proportional relation to the requests of work to produce the goods being traded. It means, if the demand for those goods increases, so will the work needed to produce those goods. If the demand for those goods decreases, so will the labor needed to manufacture those products.

Answer 2

Derived demand.

Step-by-step explanation:

Derived demand is when the demand for a product is dependent on the demand of another product. For example demand for labor can be seen as derived from the demand for goods and services. When there is more demand for goods and services, companies hire more and there is increased demand for labor.

Also in the given instance, demand for energy efficient windows is derived from the quantity of houses being built. The more houses that are built the more windows Anderson sells.