The demand for transportation is said to be "derived" because the large majority of travel is not for the purposes of movement, but in order to reach destinations. When demand for a good is direct (the opposite of derived) the core presumption is insatiability: all else being equal, more is preferred to less. More computing power is preferred to less computing power, as an example. A necessary intermediate good to computing power is electricity. All else being equal (e.g., in the operation of two computers of equal computing power) we do not prefer more electricity over less. The same is true of transportation. To see this, imagine two routes from point "a" to point "b." They are identical except for their length. If the demand for transportatoin were direct, the longer route would be preferred over the shorter one--since it would represent consuming "more" transportation. But for virtually all trips, the shorter route is preferred, because the transportation isn't valued in and of itself, but as a means to reach destination "b."
Shipping is derived from the demand for transportation of goods, etc.
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.
The nature of the demand for products differs from consumer demand because it is often derived from consumer demand.
derived demand
derived demand
Shipping is derived from the demand for transportation of goods, etc.
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.
The nature of the demand for products differs from consumer demand because it is often derived from consumer 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.
because the demand comes from end user
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.
interrelated demand joint/complement demand competitive derived composite independent
derived demand
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.
buy car is it example to derived proutct
derived demond made up of particular product for eg. Tyre is made up of only for vehicles