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1. www.investopedia.com › terms › dDerived Demand: Definition, How It's Calculated, and Uses

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   Mar 24, 2023 · Derived demand is the demand for a good or service that results from the demand for a different, or related, good or service. Learn how derived demand affects the market price, the pick-and-shovel strategy, and the components of derived demand.

2. People also ask

   What are the three components of derived demand?

   • Derived demand can be broken down into three main elements: raw materials, processed materials, and labor. These three components create what economists call the chain of derived demand. Raw or “unprocessed” materials are the elemental products used in the production of goods.

   What Is Derived Demand? Definition and Examples - ThoughtCo

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   What is an example of a derived demand?

   • For example, crude oil is a raw material in the production of petroleum products, such as gasoline. The level of derived demand for a certain raw material is directly related to and dependent on the level of demand for the final good to be produced. For example, when the demand for new homes is high, the demand for harvested lumber will be high.

   What Is Derived Demand? Definition and Examples - ThoughtCo

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   What is direct derived demand?

   • Direct derived demand affects raw materials that are used to produce the final good. Indirect derived demand is the demand for goods and services that are needed to produce the products in direct demand. For example, energy to power the production of goods. The concept of the derived demand curve can be constructed under two assumptions:

   Derived Demand - Overview, Effect on the Economy, and Exemption

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   Why is derived demand important?

   • Why Is Derived Demand Significant? Demand for a good or service affects demand for a related good or service and the raw materials, labor, technology, and processed materials used to produce the related product or service.

   Derived Demand: Definition, How It's Calculated, and Uses - Investopedia

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3. en.wikipedia.org › wiki › Derived_demandDerived demand - Wikipedia

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   Derived demand is the demand for a factor of production or intermediate good that depends on the demand for another final or intermediate good. Learn the concept, examples, and elasticity of derived demand from this Wikipedia article.

4. Videos

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     Derived demand: an introduction

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     Demand, Types of Demand, Derived and Direct, Substitute & Complementary, managerial Economics, micro

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5. www.thoughtco.com › derived-demand-definitionWhat Is Derived Demand? Definition and Examples - ThoughtCo

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   Mar 14, 2019 · Derived demand is the demand for a good or service that results from a demand for a related, necessary good or service. Learn how derived demand works, its components, and its effects on the economy with examples.

   • Author: Robert Longley

6. www.economicshelp.org › blog › glossaryDerived Demand - Economics Help

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   Learn what derived demand is and how it relates to intermediate goods and services. See examples of derived demand for mobile phones, lithium, labour, transport and more.

7. corporatefinanceinstitute.com › derived-demandDerived Demand - Overview, Effect on the Economy, and Exemption

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   Learn what derived demand is, how it affects the economy, and how to construct a derived demand curve. Find out the difference between direct and indirect derived demand, and the low elasticity of derived demand exception.

8. www.financestrategists.com › derived-demandDerived Demand | Definition, Types, Investment, and Example

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   Jun 8, 2021 · Derived demand is the demand for a good or service that depends on the demand for another related good or service. Learn how derived demand works, the three types of it, how to use it in investing, and see some examples of derived demand in action.

9. www.wallstreetmojo.com › derived-demandDerived Demand - Definition, Curve, Examples, How it Works?

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   Apr 5, 2024 · Derived demand is the demand for products or services that depends on the demand for related or input products or services. Learn how derived demand works, how to draw a derived demand curve, and see examples of derived demand in different markets and economies.