Derived Demand - Explained
What is Derived Demand?
Written by Jason Gordon
Updated at March 26th, 2023
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What is Derived Demand?
In economics, derived demand means the extent to which a consumer’s desire for a given product or service at a given price is derived from (exists as a result of) another good or service.
This often arises when the utility of one good is tied to the use of another good, such as gasoline and motor vehicles.
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