THE NATURE OF THE DEMAND OR THE VARIOUS DEMAND
demand and autonomous: Those inputs or commodities which are
demanded to help in further production of commodities are said to have
in further production of commodities are said to have derived demand. For
example, raw material, labour machines etc are demanded not because the y serve
only direct consumption need o f the purchaser but because the y are needed for
the production of goods having direct demand (say , food , scooter . building
for producer's goods and consumer's goods: The
difference in these two types of demand is that
consumer's goods are needed for producing ot her goods (consumer's goods or
further producer's goods)
for durable goods non durable goods: Durable goods whether
producer's durable or consumer's durable
are the ones which canbe stored and whose replacement can be postponed.
O n the other hand, the non durables are needed as a routine and their demand
is their fore made largely to meet day-to- day
demand a nd firm or company demand: The term company demand denotes
demand for a particular product of a particular firm Industry demand refers
to the total demand for the product of a particular industry.
Total demand and market segment demand: Demand
for the market segments is to be studied b y breaking the total demand
into different segments like geo graphical areas , sub - products, product use,
distribution channels, size of customer groups, sensitivity to price etc.
The market segments are so demarcated that each segment has
its own ho mogenous demand characteristics. F urther, each o f these market
segments must differ significantly in terms of delivered prices, net profit
margins, and number of substitute s, co mpetition, seasonal, patterns and
vi. Short run de mand and long run de mand: Short run
demand refers to demand with its immediate reactions to price changes,
Income fluctuations etc. W hereas long run demand is that which will ultimately
exist as a result demand of the change in pricing promotion or products
improvement , after enough time is allowed to lat the market adjust itself to
the new situation.