derived demand


The indirect demand for something that has value based on other goods that can be derived or made from it, such as raw materials or other inputs to a process of production. Derived demand for a material is driven by changes in demand for the end product whose creation or production requires that material.

Use derived demand in a sentence

You may find that there is a derived demand for something you hold and you can make a profit from it.

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There was a derived demand and we had to keep an eye on it because it was important to our overall business.

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The derived demand was helpful for our product line as we offered a wide variety of products that our customers enjoy.

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