Question

Capital : Derived demand :: Umbrella:​

Answer 1

Derived demand is that demand which occurs when a product or a factor of production is demanded but is not directly demanded. It is demanded to full fill the other demand.

• For example, if a builder demands a building that derived demand would be the labour and the other materials that are required to build a building.
• An umbrella is demanded to protect us from the rain. This means the primary demand is not to get wet which leads to the ultimate demand for an umbrella.

Answer 2

Capital: Derived demand:: Umbrella:​ Short-term demand.

• In the capital portion, we can include the goods, and assets that can be used in production. On the other hand when capital is used to produce goods for final consumption. So we can understand the relation.
• Now for Umbrella if we think that it is good then the good is obviously seasonally. Because we can use it only in Rainy season or in Summers.Hence it is a short term demand.

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