The needs of manufacturers of production in economics that induced demand, also known as a derived demand because it is produced by the manufacturers to produce products to meet consumer demand and the needs of production, this demand is not for itself its own consumption .
Induced demand (Derived "demand") is first proposed by Alfred Marshall in its "Principles of Economics" book economic concept that refers to the demand for factors of production, means that it is the elements involved in the production of demand for products derived World steel pipe network editing , also known as the "derived demand". Demand from a factor of production (derived from) the demand for another product. Where the factors of production on the final product will contribute to. For example: why consumers need bread? Because the bread can provide direct utility. Baker Why do I need to flour? Obviously World pipe network reported that the world's steel pipe network to provide the world's steel pipe network editor , he does not expect a direct effect from the flour, he figured, with flour to produce bread consumers need to earn money. It is due to consumer demand for bread baker on the flour so that factors of production needs. Therefore, the economists put the demand for factors of production is called induced demand.