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AromaticTroubledDormouse
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LSDefine
Simple English definitions for legal terms
derived demand
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A quick definition of derived demand:
Derived demand is when something is needed because of something else. For example, if people want to buy more cars, then there will be a higher demand for car parts and workers to make those parts. It's like a chain reaction where one thing leads to another.
A more thorough explanation:
Derived demand is a type of demand that depends on the demand for another product or service. For example, if the demand for cars increases, the demand for steel, rubber, and other materials used to make cars also increases.
Another example of derived demand is the demand for construction workers. When there is an increase in demand for new buildings, the demand for construction workers also increases.
Derived demand is important because it affects the prices of goods and services. When the demand for a product or service increases, the demand for the materials and labor needed to produce that product or service also increases. This can lead to higher prices for those materials and labor.