BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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demand for secondary products only
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demand that is dependent on government supplying the product
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demand that arises because the supply of the good is reduced
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demand that arises because there is demand for another good.
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Detailed explanation-1: -Derived demand is an economic term that refers to the demand for a good or service that results from the demand for a different, or related, good or service. Derived demand is related solely to the demand placed on a product or service for its ability to acquire or produce another good or service.
Detailed explanation-2: -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.
Detailed explanation-3: -Derived demand refers to the demand for a good or service that arises from its association as an input in the production of another final good. These factors of production are not directly demanded by consumers in and of themselves. However, without them, the final goods that are demanded by consumers would not exist.
Detailed explanation-4: -Whenever several items are required to make a particular commodity, the demand for various commodities is termed as the ‘Derived Demand’. For example, the demand for building is a direct demand and demands for cement, bricks, sand, timber, labour, etc., are called as derived demands.