what are the main components of derived demand 
derived demand consists of three main components labor raw materials and processed materials labor is the work employed to produce final goods and services raw materials are the resources used to manufacture a product or service and processed materials are the products created from raw materials and labor when derived demand increases or decreases the demand for these components follow the bottom linederived demand occurs when demand for a good or service affects demand for a related good or service comprised of raw materials processed goods and labor derived demand can influence the demand for its associated components the technology needed for production and the derived product s market price however demand shifts may not significantly affect the demand for raw and processed materials that produce many other products for investors the demand for a final product or service helps predict demand for related goods or services making for a sound investment strategy 