Derived demand is best described as:

Derived demand refers to the demand for resources or factors of production that arises due to the demand for the final goods and services that those resources help to produce. When businesses decide to produce more of a product, they will have a corresponding increased demand for the inputs necessary for that production process, such as labor, machinery, and raw materials.

For instance, if there is a rise in consumer demand for cars, automobile manufacturers will need to hire more workers and purchase additional raw materials to increase their production. Therefore, the demand for labor and materials in this case is derived from the demand for the final consumer product—the cars—rather than being based on standalone features or the price of those factors of production.

In contrast, demand based on market price does not consider the backward linkage between production and consumer demand. Similarly, focusing on a good's features neglects the interconnected relationship that characterizes derived demand. Lastly, the demand for consumer goods unrelated to production does not link back to the employment of production factors that are driven by market demand, contrasting the concept of derived demand fundamentally.