Question

Steve buys a new coat from Don's clothing store. Don buys coats from Mary's factory, and Mary buys her material from Sean's mill. The cost of Steve's coat will go up if the workers in Sean's mill get raises. What economic term does this example describe?

Answer 1

Answer: Interdependence

Explanation: Steve buys a new coat from Don’s clothing store. Don’s Clothing store is a retail shop. Steve is an end user or a customer. Don buys the coat from Mary, therefore Mary is the manufacturer  who  prepares coat.  Mary buys the material from the Sean’s mill. The raw material provided to Mary is from Sean’s mill. If the workers in the Sean’s mill get raises, there is an increase in direct cost for Sean’s mill and the cost of materials will increase. Sean will sell the same material at a higher price to its customers. Hence, when Mary buys from Sean’s at a higher price, it will sell its end product coat to Don at a higher price . Thus for Steve, Mary and Don it is an interdependence of each other.

Answer 2

Choices for this question were:
A.)scarcity
B.)interdependence
C.)wants and needs

This example describes the economic term known as interdependence. The answer to your question is B. I hope this is the answer that you are looking for and it comes to your help.