The term "derived demand" refers to the demand for financial products called derivatives. the demand for a factor of production that is derived from the demand for the good the factor produces. a firm's estimated demand curve derived from sales data. a demand curve that derives from the availability of resources.

the demand for a factor of production that is derived from the demand for the good the factor produces. 

Explanation:

Derived demand is demand for a factor of production that is derived from the demand for the good the factor produces. 

It is when the demand for a good is dependent on the demand for another good.

An example of derived demand is demand for gas to fuel a car. If an individual didn't have a car, he won't buy gas but the person with a car needs gas for his car. So the demand for gas is a derived demand. If the demand for car falls, the demand for gas would also fall.

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