Derived demand refers to the business demand that ultimately comes from the demand for consumer goods.

Question

Quizplus · Accepted Answer

Derived demand refers to the demand for goods and services that arises as a result of the demand for some other good or service. In this case, the demand for business goods and services (often called factors of production) is derived from the demand for consumer goods and services. For example, the demand for steel used in automobile manufacturing is derived from the demand for automobiles by consumers.

Derived Demand Refers to the Business Demand That Ultimately Comes