Spruceland Millworks in Canada Makes Wood Pallets for Transporting and Storing

Spruceland Millworks in Canada makes wood pallets for transporting and storing new appliances such as stoves, freezers, and refrigerators. The demand for Spruceland pallets would be classified as

A) reactive demand, which is tied to primary economic drivers like the construction industry.
B) unitary demand, which is tied to the average income level for Spruceland and its competitors.
C) derived demand, which is tied to the sales of appliances.
D) inelastic demand, which is tied to the cost of the components of the pallets.
E) elastic demand, which is tied to the cost of the components of the pallets.

Correct Answer:

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