Meaning: -In economic the
term ‘demand’ refers to a desire for a commodity. Backed by the ability to pay
and the willingness to buy that commodity.
It can be
expressed as demand = desire+ability to pay+willingness to buy.
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.
