Derived demand

From ZuluNotes - Free Leaving Cert Notes

Derived Demand is a term used to describe the demand for a factors of production.

Labour is often demanded for its contribution to the production process or from the demand for the goods it produces.

A simpler example is the demand for a brick. People do not want to buy bricks because they like the brick (i.e. it is not aesthetically pleasing, nor do they get much enjoyment from it) but they want a wall, and to build a wall they need bricks. In this sense, the demand for the brick is "derived" from the demand for the wall.