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 ?
The crushing demands are derived demands which are formulated from the demands for the final products and based on the cost-minimization strategy for a given level of output.
In fact, policy actions affecting each market should have some kind of effect on closely related markets through the respective derived demands.
Consequently and reciprocally, each policy impact would have an effect on the related major oilseed markets via derived demand (Figure 2).
Tsao Mihn, president of Formosa Petrochemical, for instance, commented that his company's profits for the quarter will be better than a quarter earlier, mainly because reduced supply of refined oil from India and Japan due to periodical refinery maintenance, along with surging derived demands during the underway Olympics Games, will cause prices of gasoline, diesel and aircraft fuel to pick up in the quarter.
Similarly, given upstream inverse derived demands, equilibrium at the upstream stage is derived as:
Specifically, given costs and the derived demand curve facing the upstream stage, upstream firms simultaneously choose output to maximize profits, which generates Nash equilibrium at the upstream stage.
Because the distributors have different marginal costs, they will exhibit different derived demands for the manufacturer's product for any given final product demand curve.
Because the efficient distributors exhibit a larger derived demand curve for any given final product demand, the profits earned by the manufacturer are greater when these firms distribute its product, i.
On other words, the scheduling process only has to go from period t to period 1 one time, because all the derived demands are created at time t-1 or earlier.
Due to the creation of the derived demands for upstream operations, the forward procedure may have to carry on many passes before all demands are satisfied.
Application of the derivative principle then yields the following derived demands for the discrete reforestation choice inputs i = 1, 2:
The owner's derived demand for acreage to be planted (denoted as [A.