Definition of derived demand in English:

derived demand


  • A demand for a commodity, service, etc., that is a consequence of the demand for something else.

    • ‘Because the demand for stevedoring services is a derived demand, the elasticity of demand is small.’
    • ‘Thus it can be argued that the demand for economics courses is a derived demand.’
    • ‘The demand for electronic components is a derived demand.’
    • ‘This is because the demand for labour is a derived demand, dependent on the marginal revenue product of the output of labour inputs to the production process.’
    • ‘Therefore, the demand for transportation service is a derived demand and, in part, based on the demands and supplies of agricultural products.’