Why business demand is considered a derived demand?

By William Sandin, On 15th March 2021, Under Business and Services
Derived demand is a need for a good or service that occurs consequently due to a demand of something else. Business demand follows this pattern of derived demand because as need for products increases, business thus increases. This also works with prices.

Also, what is meant by derived demand?

Derived demand—in economics—is the demand for a good or service that results from the demand for a different, or related, good or service. It is a demand for some physical or intangible thing where a market exists for both related goods and services in question.

Subsequently, question is, what is the difference between demand and derived demand?

Demand is a quantity of a product which is required by the consumers at a price on a given period of time but derived demand is the demand created by increase in demand of a particular product for example the demand of houses create the demand of cement, iron and wood etc.

Why Shipping is a derived demand?

The demand for shipping is a derived demand as the product being consumed is not the transport itself (except in passenger transport), but the goods that are being transported. Therefore, when demand for cars increases, demand for transport increases.

What is derived demand example?

Derived demand occurs when there is a demand for a good or factor of production resulting from demand for an intermediate good or service. Example – mobile phones and lithium batteries. The rise in demand for mobile phones and other mobile devices has led to a strong rise in demand for lithium.
To derive a market demand curve, simply add the quantities that each consumer buys at each price. The prices on the vertical axis do not change, but the quantities on the horizontal axis are the sums of the consumers' demand. This group of quantities is called horizontal summation.
Yes, the money demand could be termed as derived demand. In the sense of modern market economy, you demand for goods and services in return of your labor power. But your labor power is invisible to the producer/seller of the goods and services. That's when the money comes in.
Average haul is the distance travelled by the cargo. If due to political and security risks that affect international trade, ships have to take a longer route to reach discharge port, average haul increases, which increases demand for shipping.