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

Find all the equilibrium, The "Battle of Sexes" is a famous game. The story...

The "Battle of Sexes" is a famous game. The story is that a couple tries to decide what to do on a Friday evening. The girl prefers to go to an Opera and the guy prefers to go to t

Assigment, What is the theory of second best? Prove the theorem with the he...

What is the theory of second best? Prove the theorem with the help of diagram.

Qi, During the 1990s, technological advance reduced the cost of computer ch...

During the 1990s, technological advance reduced the cost of computer chips. Explain, with the use of supply and demand diagrams, how the following markets are affected in terms of

Microeconomies, Why some country saving less and consumption more?

Why some country saving less and consumption more?

Planned order releases - mrp system, Planned Order Releases - MRP System ...

Planned Order Releases - MRP System In an MRP system, if gross requirements exceed the quantity on hand and on order, a net requirement results. Planned orders are created to

Example of insurance - reducing risk, The Value of Title Insurance While Bu...

The Value of Title Insurance While Buying a House *  A Scenario: - Price of house is $200,000 - 5% chance that seller does not own house *  Risk neutral buyer would pa

Need Homework help, If I submit an economics problem(Home work), How soon i...

If I submit an economics problem(Home work), How soon it will be answered?

Division of labor, Division of Labor The occupation or breaking down o...

Division of Labor The occupation or breaking down of jobs into simple and repetitive responsibilities.

Demand and supply, During the 1990s, technological advance reduced the cost...

During the 1990s, technological advance reduced the cost of computer chips. Explain, with the use of supply and demand diagrams, how the following markets are affected in terms of

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