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Types of Demand

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notes

Types of Demand :

1) Direct demand :

It is the demand by the consumer for goods which satisfy their wants directly. They serve direct consumption needs of the consumers. Thus, it is the demand for consumer goods. For example, demand for cloth, sugar, etc.

2) Indirect demand :

Indirect demand is also known as derived demand. It refers to demand for goods which are needed for further production. It is the demand for producer's goods. Hence, all factors of production have indirect or derived demand. For example, demand for workers in a sugar factory is derived or indirect demand.

3) Complementary/Joint demand :

When two or more goods are demanded jointly to satisfy a single want, it is known as joint or complementary demand. For example, car and fuel etc.

4) Composite demand :

The demand for a commodity which can be put to several uses is known as composite demand. For example, electricity is demanded for several uses such as light, fan, washing machine etc.


5) Competitive demand :

It is demand for those goods which are substitute for each other. For example, tea or coffee, sugar or jaggery etc.

For Better Understanding:

Types of Demand

Direct demand

Indirect demand

Complementary/Joint demand

Composite demand

Competitive demand

Key Feature

Caters to direct
consumption needs of the consumers.
It refers to demand for goods which are needed for further production. It is the demand for producer's goods. Two or more goods  demanded jointly to satisfy a single want. The demand for a
commodity which can be put to several uses.
demand for
those goods which are substitute for each
other

Examples

Cloth, sugar, Vegetables, fruits, books etc Labours in factories, wood demanded to make furniture, steel demanded by producer to make steel utensils etc

Car and fuel, ink cartridge and printers, pen and paper.

For preparing tea: milk,sugar,water, tea powder,utensil etc

Electricity is demanded for several
uses such as light, fan, washing machine etc.

 

tea or coffee, sugar or jaggery, meat or fish etc
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