Derived demand, Microeconomics

Derived demand and Demand schedule:

Derived demand is where the demand for a final product leads to the demand for a second product which is used to produce this final product - i.e. if the demand of a product is not for its own sake, but for the manufacture of another product which is in demand.   For example, the demand for furniture derives the demand for wood; the demand for petrol derives the demand for crude oil.

Demand schedule is a table or a list of various prices of a commodity and the corresponding quantities that would be purchased at a particular time period, when all other demand factors remain constant.  For example, the table below shows the demand schedule for a commodity sold in bags.  Column 1 of the Table 1 shows a set of prices of the commodity and column 2 shows the quantities of it that consumers are willing and able to buy at each price.

Price

(c000)

Quantity Demanded

(bags)

1

120

2

100

3

80

4

60

5

40

6

20

7

0

 

Posted Date: 1/2/2013 6:54:27 AM | Location : United States







Related Discussions:- Derived demand, Assignment Help, Ask Question on Derived demand, Get Answer, Expert's Help, Derived demand Discussions

Write discussion on Derived demand
Your posts are moderated
Related Questions
leat cost factor combination

5 reasons of make in contruction a ppc

In his 2009 budget proposal for the U.S., President Obama wrote, "Unfortunately, we are also inheriting the worst economic crisis since the Great Depression which will force us to

Illustrate the roles of mathematics in modern economics? Roles of Mathematics in Modern Economics: Mathematics has become a significant tool into modern economics. Mostly

1. Calculate price elasticity of demand and supply for the following functions when (a) P=8 and (b) Q=6. i. P= 40 - 0.5Q ii. Q= -40 + 0.75P iii

The question states that a hotel charges $60 a night for a room per night during off peak. This hotel has a fixed cost of $75 per night and variable costs of $40 per night (only ap

Explain the difference between a stock and a flow.   A stock is something whose quantity is calculated at a point in time, whereas a flow measures the quantity of something ove

CONCEPT AND MEANING OF INFRASTRUCTURE: Infrastructure sectors are the backbone of a national economy. It has been commonly opined that infrastructure development is closely re

why constant return to scale is important

Q. Asymmetric Information - Insurance Markets? In the United States, health insurance is usually provided for employees through contracts between the insurance company and thei