reflects the link between consumers' demand for a company's output and the company's purchase of necessary inputs to manufacture or assemble that particular product.

C. DERIVED DEMAND

Explanation:

Derived Demand

This refers to the demand for a product or service due to the demand of an intermediate or related product or service. That is, an individual demands for a particular good because of the demand for another good.

A good example of this is the demand for wood due to demands in furniture. Here the demand for wood only arises because it is necessary in the production of furniture which is demanded for. So it is the kind of demand that arises due to demand for other products.

A company demands necessary inputs for production because of the demand for the output by the consumers (consumer's demand). Hence why derived demand reflects the link.

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