8. direct Demand
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derived demand
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1. Meaning
When the
goods and services are demanded by consumers to satisfy their wants directly,
such demand is called direct demand.
2. Origin of Demand
Direct
demand comes from the consumers for direct consumption.
3. Dependence
It depends on
utility, price, income, taste, preference, and habits etc. Of the consumers.
4. Examples
Allconsumer
goods such as furniture, garments, TV set, soaps, tea, etc, have direct
demand.
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When a commodity is demanded to produce
another product, such demand is called derived demand or indirect demand.
Derived demand comes from producers to
carry out production.
It depends on the demand for other goods
and services.
Factor services such land, labour, raw
materials, machinery, etc. Have derived or indirect demand.
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DIRECT DEMAND DERIVED DEMAND
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