Economics Help (reference below) defines derived demand as demand for a good or factor of production resulting from demand for an intermediate good or service.
Economics Help elaborates:
“The demand for economic tutors depends on the demand for students wishing to study economics. If students sign up to an economics course, then the college will demand tutors to be able to teach the students.
“The demand for steel workers, is highly dependent upon the demand for steel. As the demand for British coal fell in the 1980s, demand for coal miners declined.”
Atlas topic and subject
Economics Help, Derived Demand, at http://www.economicshelp.org/blog/glossary/derived-demand/, accessed 8 May 2016.
Page created by: Ian Clark, last modified 8 May 2016.