Definitions for derived demand
de·rived de·mand

WikipediaRate this definition:0.0 / 0 votes

1. Derived demand

   In economics, derived demand is demand for a factor of production or intermediate good that occurs as a result of the demand for another intermediate or final good. In essence, the demand for, say, a factor of production by a firm is dependent on the demand by consumers for the product produced by the firm. The term was first introduced by Alfred Marshall in his Principles of Economics in 1890. Demand for all factors of production is considered as derived demand.This is similar to the concept of joint demand or complementary goods, the quantity consumed of one of them depending positively on the quantity of the other consumed.Example if any goods is in production process by demanding capital automatically speed of production will increase that is directly demand or derived demand

WikidataRate this definition:4.0 / 1 vote

1. Derived demand

   Derived demand is a term in economics, where demand for a factor of production or intermediate good occurs as a result of the demand for another intermediate or final good. In other words, if the demand for a good such as wheat increases, then the productivity increases, which leads to an increase in labour. This may occur as the former is a part of production of the second. For example, demand for coal leads to derived demand for mining, as coal must be mined for coal to be consumed. As the demand for coal increases, so does its price. The increase in price leads to a higher demand for the resources involved in mining coal. And therefore: Where MRP is the marginal revenue product of labor, MPP is the marginal physical product of labor, and P is the price of the physical product of labor. Demand for transport is another good example of derived demand, as users of transport are very often consuming the service not because they benefit from consumption directly, but because they wish to partake in other consumption elsewhere. Derived demand applies to both consumers and producers. Producers have a derived demand for employees. The employees themselves are not demanded; rather, the skills and productivity that they bring are.

How to pronounce derived demand?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say derived demand in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of derived demand in Chaldean Numerology is: 5

2. Pythagorean Numerology

   The numerical value of derived demand in Pythagorean Numerology is: 9

References

1. ^ Wikipedia
   https://en.wikipedia.org/wiki/Derived_Demand
2. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=derived demand