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Derived demand results from a demand for increase in intermediates goods or production resulting from another demand resulting for final or intermediate goods. For example, a demand for an item can make its production increase, which makes its labor increase.
Wiki User
∙ 9y ago
Wiki User
∙ 13y agoThe demand for labor is "derived" from the production and demand for the product being demanded. If the demand for the product increases two things will probably happen: 1) the price will increase and 2) the demand for production labor will increase until the equilibrium price and production numbers are met. Labor is "derived" from the market demand for the product.
Source(s):M.A. Economics 1968Wiki User
∙ 10y agoBecause workers are only demanded by employers because they want to use that labour to produce other goods and services.
Wiki User
∙ 10y agobecause it is dependent on what happens in the product market.
Wiki User
∙ 11y agobecause the demand comes from end user
Emmanuella Wambutda
Why industrial demand is called derived demand
Haylee Waelchi
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What determines the supply and demand of the factors of production?
The demand for labor is a derived demand in that it depends on a company's decision to supply output in another market. This expansion in a market that has customers is the main factor in how much the demand for labor will increase.
The demand for capital by a firm is based on the demand for the product that the capital produces This relationship is referred to as?
I can tell you it is one of the 4 items: product demand, derived demand, resource utilization, or cost minimization
What is meant by derived demand and how does this demand characteristic impact freight demand?
Derived demand is the demand to transport goods or services to location depend on demand to consume a goods or services to location. Freight of product is derived from the customer demand of product.
Why shipping is a derived demand?
Shipping is derived from the demand for transportation of goods, etc.
Where is business demand often derived?
The nature of the demand for products differs from consumer demand because it is often derived from consumer demand.
Why is the demand of labor a derived demand?
labor demand is said to be derived demand because it is derived from the output levels in the goods market, which contribute to employers revenue and hence profit. one important thing is that, it is a means to an end. that is something employers look out for to enhance production.
What determines the supply and demand of the factors of production?
The demand for labor is a derived demand in that it depends on a company's decision to supply output in another market. This expansion in a market that has customers is the main factor in how much the demand for labor will increase.
The demand for capital by a firm is based on the demand for the product that the capital produces This relationship is referred to as?
I can tell you it is one of the 4 items: product demand, derived demand, resource utilization, or cost minimization
What is meant by derived demand and how does this demand characteristic impact freight demand?
Derived demand is the demand to transport goods or services to location depend on demand to consume a goods or services to location. Freight of product is derived from the customer demand of product.
Why shipping is a derived demand?
Shipping is derived from the demand for transportation of goods, etc.
Where is business demand often derived?
The nature of the demand for products differs from consumer demand because it is often derived from consumer demand.
What does the demand for labor contribute to?
Demand for labor contributes to how much wages should be
What is an example for derived demand?
Derived demand comes from demand for another product. For example, if coal is in high demand, then there will be derived demand for mining. Another example: A farmer grows crops. In order to grow crops he needs fertilizer. Therefore, the amount of fertilizer he needs to buy, will derive from the amount of crops he needs to grow. Basically, derived demand comes as a result of demand for something else.
What will cause the capital stock when it increases?
Increases in the stock of capital will cause which of the following?The demand of labor increases.The demand of labor decreases.Selected answer No change in the demand of labor.First increase then decrease the demand of labor
Why is industrial demand called derived demand?
because the demand comes from end user
Demand for one good or service that is determined by demand for another good or service is .?
derived demand
What are the types of demand?
interrelated demand joint/complement demand competitive derived composite independent
