Sunday, 25 February 2018

Types of Demand - Micro Economics

Following are some of the different forms of Demand-

1. Joint Demand - This refers to a kind of demand where products are demanded jointly. For example, Inkpen and ink, car and petrol etc. Such products are demanded jointly. For example, there won't be any demand for ink if ink-pen is not there and vice versa

2. Competitive Demand - This refers to demand of products which are close substitutes of each other. For example, tea and coffee.

Economics-Types of Demand
Types of Demand


3. Derived Demand or Indirect Demand - When the demand of a product is derived from the demand of any other product, such a demand is called derived demand. For example, cement. Cement is demanded not for direct consumption but is demanded as there is demand for housing. Thus cement derives its demand from demand of housing

4. Direct Demand - This refers to demand of products which are directly consumed by people. For example, all consumer electronics. The demand of these products does not depend on the demand of any other product. These products are directly consumed by people. For example, the demand of a washing machine does not depend on the demand of any other product. The washing machine is consumed (used) directly by the people.

5. Composite Demand - This refers to the demand of the products which have multiple uses. For example, electricity, milk etc. These products have multiple usages and can be used for a variety of purposes. For example, electricity is used to run TVs, washing machines, computers, music systems etc.

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