derived demand


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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 ?
First, freight activity is derived demand; the amount of transportation services that shippers demand is directly affected by the demand for the goods that shippers sell.
In economic terminology, the demand for skills is a derived demand. It derives from the state of the economy, its needs, and the nature of its growth.
In parallel, derived demand is negatively influenced by several factors, including insufficient economic growth generating enough good jobs in the economy, the formal private sector not growing sufficiently to make up for the decline in formal employment in the public sector, and a high degree of employment instability and irregularity.
Both NR and SR are derived demand and a rubber product is bought because it is required, and normally without concern for the type of rubber used.
This in turn would facilitate generation of derived demand, which would lead to further expansion of the frontiers of the economy - on both supply and demand fronts.
This more or less exaggerated 'derived demand for machines' Hayek called the "acceleration effect," following the terminology of "a well known doctrine, the so-called 'acceleration principle of derived demand...'" (Hayek, [1939] 2012, pp.
when it comes to spending by tourists in irish destinations, opportunities are generally much easier to commercialise at the derived demand level (e.G., hotels and restaurants) than they are at the primary demand level (e.G., visitor centres and national parks).
The pipeline market has resisted these cycles because growth is not solely derived from economic factors, but from a combination of economic and "derived demand" incentive.
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).