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CAPE Economics Unit 1 · 2005 · Paper 1 · Question 12(a)

A farmer buys a new tractor and fertilizer, along with bread, cheese, and milk for personal consumption.

Identify which of the goods purchased by the farmer have demands classified as 'derived demands'.

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Other parts of this question

  1. 12(b)Explain why the demand for the goods identified in (a) is considered derived demand.[2 marks]
  2. 12(c)Provide TWO other examples of goods whose demand is considered derived demand.[2 marks]

More practice: the rest of this paper · more The Demand for and Supply of Factors questions · all CAPE Economics Unit 1 past papers