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

Working of ifc, Working of IFC: The IBRD loans are available only to m...

Working of IFC: The IBRD loans are available only to member-country governments or with the guarantee of member-country governments. Further, IBRD can only make a loan but it

When tree berson shared , ahmed has 500 dolars.asma has 700 dolars.cismaan...

ahmed has 500 dolars.asma has 700 dolars.cismaan has 800 dolar

Consumer Behavior, Ask questioThe difference between the present value of c...

Ask questioThe difference between the present value of cash inflows and the present value of cash outflows over a period of time is termed as Net Present Value. This is used for th

Demand and supply considerations of education, Normal 0 false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

PED, what do we mean by The narrowness of definition of the commodity.

what do we mean by The narrowness of definition of the commodity.

Supply and demand, #questioIn many metropolitan areas of the country, local...

#questioIn many metropolitan areas of the country, local governments often impose rent controls on apartments. The justification for doing so is that the current market rent is con

Favor of selling inventories, If producers expect future prices to enhance,...

If producers expect future prices to enhance, current supply will decline in favor of selling inventories at higher prices later.  In other words, supply will reduce (a shift to th

Draw a graph of the market for reserves, During summer of 2006, China incre...

During summer of 2006, China increased their reserve requirement for the banking system while maintaining a fixed target for the interbank lending interest rate. Draw a graph of th

Macro ecomomics, explain how macro and micro issues may be represented usin...

explain how macro and micro issues may be represented using production possibility curve

Elasticities of demand:, price of laptop increases by 20% and there is a 40...

price of laptop increases by 20% and there is a 40% drop in the quantity demanded?

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