Thursday, June 19, 2008

difference between derived demand and consumer demand

Derived demand is the demand experience by the chain of supplier and produces that contribution to the creation of a total offering without initial consumers demand there is no demand the chain of suppliers. Derived demand is determined by actual or expected sales. This form of demand has an effect on the purchase of capital and normal goods. Meanwhile, the consumer demand is the quantity of goods or services that desired to be bought, given market conditions. Usually the consumer demand expressed as a function of market price. The leveraging phenomenon occurs when demand in business market is derived from consumer demand. Then, because of the derived nature the demand in business market is leveraged.

No comments: