TYPES OF DEMAND:
1.Direct
and indirect demand:
Producers’
goods and consumers’ goods: demand for goods that are directly used for
consumption by the ultimate consumer is known as direct demand (example: Demand
for T shirts). On the other hand demand for goods that are used by producers
for producing goods and services. (example: Demand for cotton by a textile
mill)
2.Derived demand and autonomous
demand:
When a
produce derives its usage from the use of some primary product it is known as
derived demand. (example: demand for tyres derived from demand for car)
Autonomous demand is the demand for a product that can be independently used.
(example: demand for a washing machine)
3.Durable and non durable goods demand:
Durable
goods are those that can be used more than once, over a period of time
(example: Microwave oven) Non durable goods can be used only once (example:
Band-aid)
4.Firm and industry demand:
Firm
demand is the demand for the product of a particular firm. (example: Dove soap)
The demand for the product of a particular industry is industry demand
(example: demand for steel in India )
5.Total market and market segment demand:
A
particular segment of the markets demand is called as segment demand (example:
demand for 21 laptops by engineering students) the sum total of the demand for
laptops by various segments in India is the total market demand. (example:
demand for laptops in India)
6.Short run and long run demand:
Short run
demand refers to demand with its immediate reaction to price changes and income
fluctuations. Long run demand is that which will ultimately exist as a result
of the changes in pricing, promotion or product improvement after market
adjustment with sufficient time.
7.Joint demand and Composite
demand:
When two
goods are demanded in conjunction with one another at the same time to satisfy
a single want, it is called as joint or complementary demand. (example: demand
for petrol and two wheelers) A composite demand is one in which a good is
wanted for several different uses. ( example: demand for iron rods for various
purposes)
8.Price demand, income demand and cross demand:
Demand
for commodities by the consumers at alternative prices are called as price
demand. Quantity demanded by the consumers at alternative levels of income is
income demand. Cross demand refers to the quantity demanded of commodity ‘X’ at
a price of a related commodity ‘Y’ which may be a substitute or complementary
to X.
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