The concept of "derived demand" refers to the close relationship between a supplier's sales to a customer and the customer's sales to their customers.

Question

Quizplus · Accepted Answer

Derived demand refers to the demand for a good or service that arises from the demand for a different or related good or service. In this case, the customer's demand for a supplier's product is derived from their own customers' demand for their product.

The Concept of "Derived Demand" Refers to the Close Relationship