What is derived demand and example?
Derived Demand is demand for a good or service that arises as a result of demand for another related good or service. One example of derived demand may be demand for a certain size and configuration of smartphone case for a new smartphone that just came on the market.
What is meant by the derived demand?
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.
What is derived demand give an example of derived demand for a hotel?
The demand of the product depends on the demand of other products which customers are demanding. For Example – In tours and travels, certain spots suddenly become tourist places when shown in a movie or when they receive popularity. So the hotels and restaurants start becoming full. Now there would be derived demand.
Which of the following examples best illustrates the concept of derived demand?
Which of the following best illustrates the concept of “derived demand”? An automobile firm faces an increase in the demand for cars it supplies to the market, which leads to an increase in the demand for autoworkers. the demand for output leads producers to demand inputs used to produce finished goods.
Which of the following is an example of a derived demand?
Explanation: 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, labor, etc., are called as derived demands.
What are some examples of demand?
If movie ticket prices declined to $3 each, for example, demand for movies would likely rise. As long as the utility from going to the movies exceeds the $3 price, demand will rise. As soon as consumers are satisfied that they’ve seen enough movies, for the time being, demand for tickets will fall.
What is derived demand give a good example to support your answer?
Thus the demand for labour is a derived demand from the demand for goods and services. For example, if the demand for a good such as wheat increases, then this leads to an increase in the demand for labour, as well as demand for other factors of production such as fertilizer.
Which of the following is example of derived demand?
Thus the demand for labour is a derived demand from the demand for goods and services. For another example, demand for steel leads to derived demand for steel workers, as steel workers are necessary for the production of steel. As the demand for steel increases, so does its price.
What is the definition of derived demand quizlet?
Derived Demand. The demand for a resource that arises from the demand for the good produced by the resource.
Which of the following is an example of derived demand?
Which of the following is an example of a derived demand for labor?
What is a derived demand in transport?
The demand for transport is a derived demand, an economic term, which refers to demand for one good or service in one sector occurring as a result of demand from another. Users of transport are primarily consuming the service not because of its direct benefits, but because they wish to access other services.