OMTEX CLASSES: There are many types of demand.

There are many types of demand.

Ans. Yes, I do agree with the given statement. Following are the various types of demand.

The types of demand can be mainly divided into two groups: -

·         Individual Demand
·         Market Demand

1.      Individual Demand: -It refers to the demand for a commodity from an individual. It is the amount of a commodity an individual consumer is willing to buy at a given price during a given period of time.

2.      Market Demand: -It refers to the total demand of all the individual consumers for a particular commodity. It is the amount of commodity which all consumers are willing to buy at a particular price, and at a particular point of time.

3.      Other types of demand:


a)      Direct demand: -When the demand for a commodity is for direct consumption, it is called direct demand. All consumer goods have direct demand because they are demanded for direct consumption.

b)     Derived Demand: -When the demand for a commodity depends on the demand for goods and services produced by it, it is called derived demand. All factor services such as land, labour, capital, etc


c)      Joint Demand: -When two or more commodities are demanded at the same time to satisfy a single want, it is called joint demand. For example, car and petrol; pen and paper etc.


d)     Composite Demand: -When a single commodity or service is demanded to satisfy various wants, it is called composite demand. For example, electricity is demanded for lighting, heating, cooking, etc (water also)



e)      Competitive Demand: -When the demand for a commodity competes with the substitutes, it is called competitive demand. For example. Soft drinks such as coca-cola, Pepsi, etc.