Derived demand, Microeconomics

Assignment Help:

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

 


Related Discussions:- Derived demand

General equilibrium , How to solve general equilibrium in pure exchange eco...

How to solve general equilibrium in pure exchange economy with 2 consumer and 3 commodities

Gdp components, study on internet will impact on gdp

study on internet will impact on gdp

Opertunity cost, how do you calculate opportunity cost

how do you calculate opportunity cost

Visit to village panchayat for agricultural based project., related documen...

related documents, photos,paper for permission from court etc.

Growth of employment opportunities, GROWTH OF EMPLOYMENT OPPORTUNITIES: ...

GROWTH OF EMPLOYMENT OPPORTUNITIES: Several disquieting features are observed in the Indian labour market over the past two decades particularly during the 1990s. These are di

Market structures, illustrate and discuss the implications of various marke...

illustrate and discuss the implications of various markets structures(competitive and non-competitive) for price dertimation

What is yuen’s profit function, Yuen, a travelling salesman for snake oil, ...

Yuen, a travelling salesman for snake oil, can produce the stuff at a marginal cost of 1. There are 100 potential customers in Vernon, each of whom has the following demand functio

What are the causes of inflation, What are the causes of inflation? De...

What are the causes of inflation? Define inflation as a steady enhance in the general price level. Then, there are, well, two and a half basic reasons: 1) Demand-pull infla

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd