According to The Globe and Mail, the fastest-growing small businesses in Canada in 2011 were
a. Specialty clothes manufacturing
b. Health practitioners
c. Accounting and bookkeeping
d. Computer-software design
e. Machinery and equipment repair
f. Architectural services
In each case, list two derived demands that you predict will be increasing as a result, and explain your reasoning.
SOLUTION
The following are among the expected changes in the derived demands:
a) Specialty clothes manufacturing: the demand for thread and the demand for industrial-quality sewing machines. Both are necessary inputs to the production in clothing.
b) Health practitioners: the demand for basic medical supplies and the demand for office managers. Both are necessary to those practitioners who establish private practises.
c) Accounting and bookkeeping: the demand for accounting-related software and the demand for filing cabinets and other office equipment. Both are necessary inputs to being an effective accountant or bookkeeper.
d) Computer-software design: the demand for computers and the demand for energy drinks. Software designers presumably need computers on which to work, but they also seem to need the energy drinks that help them create great software!
e) Machinery and equipment repair: the demand for basic tools and the demand for repair manuals. Both are necessary to establish oneself as a professional in this field.
f) Architectural services: the demand for computer-assisted design (CAD) programs and the design for sketching paper and pencils. Both are essential tools for architects.