Economic Surplus and Derived Demand
8 Pages Posted: 13 Jun 2006
Date Written: June 2006
Most demand - especially labor demand - is derived from the demand for some other product. This note demonstrates that the usual analysis of economic rent, as typically explained for the case of consumers' surplus, carries over to the case of derived demand.
Keywords: derived demand, indirect demand, consumers' surplus, economic rent
JEL Classification: D00, D61
Suggested Citation: Suggested Citation