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Economic Surplus and Derived Demand

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  • Schlicht, Ekkehart

Abstract

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.

Suggested Citation

  • Schlicht, Ekkehart, 2006. "Economic Surplus and Derived Demand," Discussion Papers in Economics 940, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenec:940
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    File URL: https://epub.ub.uni-muenchen.de/940/1/schlicht_consumersurplus.pdf
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    Keywords

    derived demand; indirect demand; consumers' surplus; economic rent;
    All these keywords.

    JEL classification:

    • D00 - Microeconomics - - General - - - General
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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