Editing Demand curve (section)

== Derived demand ==
[[File:Supply and demand-stacked4.png |thumb|300px| Derived demand]]
The demand for goods can be further divorced into the demand markets for final and [[intermediate good]]s. An intermediate good is a good utilized in the process of creating another good, effectively named the [[final good]].<ref>{{Cite web|last=Kenton|first=Will|title=Understanding Intermediate Goods|url=https://www.investopedia.com/terms/i/intermediate-good.asp|access-date=2020-12-01|website=Investopedia|language=en}}</ref> It is important to note that the cooperation of several inputs in many circumstances yields a final good and thus the demand for these goods is ''derived'' from the demand of the final product; this concept is known as [[derived demand]].<ref name=":0">{{Citation|last=Whitaker|first=John K.|title=Derived Demand|date=2008|url=http://link.springer.com/10.1057/978-1-349-95121-5_97-2|work=The New Palgrave Dictionary of Economics|pages=1–3|editor-last=Palgrave Macmillan|place=London|publisher=Palgrave Macmillan UK|language=en|doi=10.1057/978-1-349-95121-5_97-2|isbn=978-1-349-95121-5|access-date=2020-12-01|url-access=subscription}}</ref> The relationship between the intermediate goods and the final good is direct and positive as demand for a final product increases demand for the intermediate goods used to make it.

In order to construct a derived demand curve, specific assumptions must be made and values held constant. The supply curves for other inputs, demand curve for the final good, and production conditions must all be held constant to ascertain an effective derived demand curve.<ref name=":0" />