Derived Demand Across Markets Flashcards

1️⃣ Familiarise yourself with the flashcards:

  • Look through all the flashcards to see what's on both sides.
  • Make sure you understand the information on each card. If something's unclear, click the link to the revision notes at the bottom of the page for more details.

2️⃣ Test yourself:

  • Look at the question or prompt on each card and try to remember the answer before flipping it over.
  • Check the answer and make a note of any cards you find challenging and need to go over more.

3️⃣ Consistently Review and Practice:

  • Use spaced repetition: spend more time on the cards you struggle with and go over them more often.
  • Regularly review all the flashcards to help you better understand and retain the information over time.

Note: We may include questions that have multiple correct answers. It's useful to remember specific examples to understand these concepts better.

PERSONALISED 1-TO-1 TUTORING

Need more help on this topic? Get 1-to-1 support

Get support with clear explanations, practice and feedback (Ages 5 to 16).

  • DBS-checked tutors
  • Flexible times
  • Parents can be updated

Want an ad-free experience? Subscribe to remove ads

What does derived demand mean?

Demand for an input because people want the final good or service it helps produce.

Which market creates derived demand: the product market or the input market?

The product market. Demand for the final product creates demand for inputs.

If demand for cars rises, what happens to demand for tyres?

It rises, because tyre demand is derived from car demand.

If demand for smartphones falls, what happens to demand for microchips?

It falls, because chip demand is derived from phone demand.

Why is the demand for bus drivers derived?

It depends on how many bus journeys people want.

When demand for new houses rises, how does the demand for bricks change?

It increases; the demand curve shifts to the right.

What is the difference between direct demand and derived demand?

Direct demand is for a final good or service. Derived demand is for inputs needed to make or provide it.

If more people shop online, what happens to demand for delivery drivers?

It increases, because demand for deliveries has gone up.

If demand for petrol cars falls, what happens to demand for petrol engines?

It falls, as engine demand is derived from car demand.

What most often causes derived demand to change?

A change in demand for the final good or service.