derived demand

Definition

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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