12. 3M has developed a new type of plastic film used for shipping security. It is more durable than any other form of film on the market. The first year after the product was introduced its sales totaled $435 million. Analysts have predicted an annual growth of 30 percent as businesses like transportation companies discover how well the film protects their products. Because the demand for the new 3M film is dependent on the demand for the products transported within it, the demand for the film is __________.
a. derived
b. inelastic
c. routine
d. elastic
e. constant
2006-09-26 14:10:00 · 9 answers · asked by danhough83 1 in Education & Reference ➔ Higher Education (University +)
The correct answer is A, as you guessed. The key is that the question states "demand for the new 3M film is DEPENDENT on the demand for the products transported within it." The demand for the film is dependent, and therefore derived from the demand for shipped goods. If there were no demand for transported goods, there would be no demand for the film. Thus, A is the answer.
Elasticity deals with the responsiveness of quantity demanded to changes in price, which is completely unrelated to the question. Thus B and D are incorrect.
Demand is never constant- it always depends on factors such as consumer preferences, prices of related goods, income, etc. Therefore E is incorrect.
Finally, "routine demand" has no real meaning economically, as far as I can tell. C is incorrect.
2006-09-26 17:06:46 · answer #1 · answered by Eric M 1 · 0⤊ 1⤋
The demand is constant.
2006-09-26 21:18:37 · answer #2 · answered by Goldylocks 5 · 0⤊ 0⤋
D. elastic
supply and demand,elastic=being flexible to the demand.
2006-09-26 21:18:25 · answer #3 · answered by starrdevine 6 · 0⤊ 0⤋
i might agree not sure really think that elastic works to as in it stretches and expands according to the level of need that is placed upon it hope that helps
2006-09-26 21:14:37 · answer #4 · answered by natasha v 3 · 1⤊ 0⤋
I go with D too
elastic it means it can stretch more or even less
2006-09-26 21:30:56 · answer #5 · answered by edsis_sg 2 · 1⤊ 0⤋
Yes lets go with that.
2006-09-26 21:13:29 · answer #6 · answered by dimondbacks7 3 · 0⤊ 1⤋
e it is constant
2006-09-26 21:13:23 · answer #7 · answered by c0mplicated_s0ul 5 · 0⤊ 1⤋
i choose z
2006-09-26 21:12:58 · answer #8 · answered by curious 2 · 0⤊ 0⤋
D.
2006-09-26 21:25:26 · answer #9 · answered by shmux 6 · 1⤊ 0⤋