derived demand


Also found in: Wikipedia.

derived demand

DEMAND for a particular product which is driven by demand for a different product, e.g. the demand for joinery is at least partly derived from the demand for new housing.

derived demand

the DEMAND for a particular FACTOR INPUT or PRODUCT that is dependent on there being a demand for some other product. For example, the demand for labour to produce motor cars is dependent on there being a demand for motor cars in the first place; the demand for tea cups is dependent on there being a demand for tea. See MARGINAL REVENUE PRODUCT, FACTOR MARKETS, COMPLEMENTARY PRODUCTS.
References in periodicals archive ?
when it comes to spending by tourists in irish destinations, opportunities are generally much easier to commercialise at the derived demand level (e.
Derived demand restricted the fall in spending in this market due to government regulation, safety and environmental or other actions that resulted in capital construction and maintenance activity.
With regard to the harmed categories, the paper said all economic agents are hurt but landowners lose the most as derived demand for land declines dramatically reflecting the outflow of refugees.
In the meantime, as plastics and rubber machinery and raw materials are closely related to China's strategic emerging industries (SEIs), the derived demand for cutting-edge technology is strong.
Demand for Railway transportation services is a derived demand with a direct co-relation to the IIP growth in the country, especially the growth in the core infrastructure industries.
Consequently and reciprocally, each policy impact would have an effect on the related major oilseed markets via derived demand (Figure 2).
As of 2007, the derived demand for helium was 162 million nanometers (nm) and, according to the paper delivered that year by D.
With shipping being a derived demand, this is something beyond the control of the industry's players" said the report.
After explaining concepts including price elasticity and derived demand, and transport measurement units, they discuss the impact of transportation on goods and services in advanced and developing economies, transportation regulation, characteristics of the transportation market, and market structure models relevant to costing and pricing.
Once the [supply] comes on you'll know whether there's a better derived demand.
There is also some government derived demand, (but) good properties will still attract good interest," he explained.
However, once the fuel price decreases, it will have a sobering effect on vehicle retail which can benefit from the derived demand, Nyambe said.