Can someone please explain the difference between composite demand and derived demand? Thanks

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AS Economics

Posted Sat 5th January, 2013 @ 13:40 by riannah

1 Answer

  • 3 votes

Composite demand is when something is demanded for two or more uses e.g. oil has composite demand.

Derived demand is where the demand for one good is basically because of the demand for another good.  An example of derived demand would be labour.

Answered Sat 5th January, 2013 @ 15:10 by .