Definition of Conditional Factor Demands: Conditional factor demands are a collection of functions that give the optimal demands for each of several inputs as a function of the output expected, and the prices of inputs. Often the prices are taken as given, and incorporated into the functions, and so they are only functions of the output.

Usual forms:

x₁(w₁, w₂, y) is a conditional factor demand for input 1, given input prices w₁ and w₂, and output quantity y. (Econterms)

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