Derived Demand

[Farhananoor]

Derived Demand: Demand that is dependent on another source; it can be fundamental to the success of efforts to sell capital equipment and big-ticket industrial service.

[munna99185]

The term used in economic analysis that describes the demand placed on one good or service as a result of changes in the price for some other related good or service. It is a demand for some physical or intangible thing where a market exists for both related goods and services in question. The derived demand can have a significant impact on the derived good's market price.

[Source: http://www.investopedia.com/terms/d/derived_demand.asp]

Sayed Farrukh Ahmed
Assistant Professor
Faculty of Business & Economics
Daffodil International University