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Indirect demand refers to the demand for goods or services that arises from the demand for another good or service. This can occur when one product is necessary for using another product, causing a ripple effect in the demand chain. For example, the demand for automobile tires is indirectly driven by the demand for automobiles.

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Different between direct demand and indirect demand?

Direct demand is the demand that the primary agent has for something. The primary agent desires the good or service for themselves. Indirect demand is the demand that arises for something by a secondary agent due to an interaction that occurs corresponding to the primary agent. For example: If a federal mandate occurs for ethanol to be blended at a level for the entire transportation fuel supply, the increase in corn demanded for producing ethanol is an indirect demand. The mandate may not be for corn use, but there is indirect demand for corn. However, consider that the ethanol production facilities that utilize corn for the production of ethanol have a direct demand for corn. The indirect demand for corn arises from the original demand for ethanol. The designation of direct or indirect is a matter of perspective for the question being asked.


What is direct and indirect demand?

Demanded goods which satisfy human wants directly is called direct demand.


What is an example of indirect cause?

An example of an indirect cause could be a company laying off its employees due to a decrease in consumer demand caused by a recession. The recession indirectly leads to the job cuts by impacting the company's revenue and necessitating cost reductions.


What is Direct action and indirect action of external environment of organization?

The organization is going to be influenced by the laws that are placed on it. Consumer demand will also influence how the business is ran.


What is a indirect bidder in a treasury auction?

An indirect bid, or IB, which is a bid of significant size that does not go through the primary dealer community. Treasury traders view this bid as demand from central banks, which accumulate dollars during periods of intervention in the foreign-exchange markets.


When the demand for a commodity is inelastic who bears the greater burden of the indirect tax?

When the demand for a commodity is inelastic, consumers bear a greater burden of the indirect tax. This is because inelastic demand means that consumers are less responsive to price changes; they will continue to buy nearly the same quantity even as prices rise due to the tax. Producers may be able to pass on most or all of the tax to consumers in the form of higher prices, resulting in a larger share of the tax burden falling on the consumers.


What does indirect mean in a sentence?

Indirect means not direct. We got there by indirect means. The author used indirect characterization.


What is the comparative of indirect?

the most indirect. This is the most indirect route ever to the airport


What is an example of an indirect form of funding?

the indirect form is indirect form hahaha :)


The country being described has a government that most resembles which type of democracy?

A direct democracy


What is indirect counting?

when you count indirect.


What are advantages of indirect production in commerce?

Indirect production in commerce refers to the process of outsourcing certain tasks or processes to third-party suppliers or manufacturers. One advantage of indirect production is cost savings, as it allows businesses to benefit from economies of scale and specialization. Another advantage is increased flexibility, as companies can adjust their production levels more easily in response to market demand. Additionally, indirect production can also lead to improved quality and innovation through collaboration with specialized suppliers.