clamm2003 clamm2003
  • 15-02-2021
  • Business
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A demand for a product or resource because of its contribution to the final product is called

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eooyibo123
eooyibo123 eooyibo123
  • 20-02-2021

Answer:

Derived demand

Explanation:

Derived demand occurs when a good is requested not for benefits they directly provide, but for their contribution to another product.

For example capital, land, labour, and raw materials are demanded for their role in producing a final product.

So they can be seen as goods that have derived demand.

When they demand for the final product increases the good that has derived demand also increases, and vice versa.

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