GK
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: -On the other hand, derived demand refers to the demand for a product that arises due to the demand for other products. Moreover, the demand for substitutes and complementary goods is also derived demand.
Detailed explanation-3: -Direct demand is the demand for a final good. Food, clothing and cell phones are an example of this. Also called autonomous demand, it’s independent of the demand for other products. Derived demand is the demand for a product that comes from the usage of others.
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.