derived demand


Definitions (2)

1.Demand for a basic good (wanted not for its own sake but for the goods derived from it) such as textiles, that is due to its use in the production of another good such as apparels.
2.Demand for an input to a production process, dependent on the output of a final or finished product. These inputs include factors of production (capital, labor, land), raw materials, or intermediate (semi-finished) goods.

Use derived demand in a sentence

  • Some things have a derived demand that will always be there so their price never dips to low at any time.

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  • The derived demand for exotic hardwood has increased substantially due to the recent boom in luxury furniture production which requires it.

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  • The derived demand for the fabric went up as the couch it was used to make became one of the most popular the manufacturer had to offer.

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