The demand for tires is considered to be a 'derived demand.'

This topic has expert replies
Moderator
Posts: 7187
Joined: Thu Sep 07, 2017 4:43 pm
Followed by:23 members

Timer

00:00

Your Answer

A

B

C

D

E

Global Stats

The demand for tires is considered to be a 'derived demand.' That is to say, much of the demand for tires is based on the demand for cars. In a time when the demand for cars drops, the demand for tires generally drops as well, and by a similar amount. In urban locations, however, the demand for cars is typically lower than other areas, and the demand for tires is not considered a derived demand.

Which of the following statements, if true, most strengthens the argument above?

A) Most urban cities have decent public transportation systems.

B) There are many people who live in urban locations who drive cars.

C) High costs for parking lead to lower demand for cars.

D) Tires wear out more quickly on urban streets due to potholes.

E) In urban locations, there are no other uses for tires besides on cars.

Legendary Member
Posts: 2214
Joined: Fri Mar 02, 2018 2:22 pm
Followed by:5 members

by deloitte247 » Sun May 27, 2018 5:38 am

Timer

00:00

Your Answer

A

B

C

D

E

Global Stats

Option A: VALID
This is very true. Take for example, New York city. There is every possibility that the demands for tires wont be commensurate with the numbers of cars available in the city due to good roads devoid of tire wearing potholes, also, people could go round the city in public transport which would take pressure off their personal cars.

Option B: INVALID
This statement has in fact, weakened the writer's argument by way of contradicting the inverse proportionality of the urban-car distribution. From the write-up derived demand does not apply to urban settlements.

Option C: INVALID
This is the wrong supposition. To think people wont buy cars, considered to be luxuries, because of simple excuses as those of car parking lots, is rather unfortunate and uninformed.

Option D: INVALID
This is not correct because, tires are likely to wear out more in non-urban settlements because of the dearth of motorable road infrastructures. Potholes do exist in some parts truly but it would be lame to seek to generalize it as it is nothing compared to non-urban areas.

Option E: INVALID
This maybe correct but it is entirely a fact because tires are used for other purposes. In military checkpoints set-up, in bonfire crusades and in the destruction of major dump sites for easier conflagration of dirt hills.