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

Answer paper, What is the theory of Second Best? Prove the theorem with the...

What is the theory of Second Best? Prove the theorem with the help of a diagram.

Economies of scale, what are the limitations of economies of scale?

what are the limitations of economies of scale?

Determine the change in unemployment - okun''s law, 1. Utilize Okun's law ...

1. Utilize Okun's law to answer the questions below; u t  - u t-1  = -0.4(g yt  - 3%) Assuming u t-1  = 7% a. Calculate the change in u (u t  - u t-1 ) for each of the follo

Production possibilities curves, What are the most important challenges tha...

What are the most important challenges that economists try to address? (ii) What is the role of government in a market based economy? (iii) Who are the main economic players and w

Free trade, is country beter off with ban on imports?

is country beter off with ban on imports?

Micro economics, If the Bank of England wanted to discourage investment spe...

If the Bank of England wanted to discourage investment spending and reduce aggregate demand, it could? A. reduce the required reserve ratio B. sells securities on the open m

Derive a demand function, Zac consumes only pizza and chianti. He consumes ...

Zac consumes only pizza and chianti. He consumes these goods in fixed proportions: 2 slices of pizza for one glass of chianti. His income is $100 per week. a. Derive demand func

What are the possibilities of returns to scale in production, What are the ...

What are the possibilities of returns to scale in production technology? Three possibilities are there as: technology exhibits (a) constant returns to scale; (b) decreasing ret

Barometric forecasting, It is also known a sleadig indicators forecasting N...

It is also known a sleadig indicators forecasting National Bureau of Economic Research of U. S.A has identified three types of indicate Leading indicators coincidental indicators a

Calculate wi’s cost of debt and wacc, 1.    Introduction Wood Investm...

1.    Introduction Wood Investments (WI) is a private equity fund that specialises in the leveraged acquisition of publicly-quoted companies with the intention of producing h

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