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Demand:The term 'demand' is defined as the desire for a commodity which is backed by willingness to buy and ability to pay

for it. The different types of demands have been explained below as follows:

Individual demand:
It is the quantity of a commodity demanded by an individual consumer at a particular price during a given period of time.

Market demand:
It is the total quantity of a commodity demanded by all the consumers in the market during a given period of time.

Joint demand:
When two or more commodities are ointly needed to satisfy a single want! then the demand for such goods are said to be oint demand.

Composite demand:
When a commodity is demanded for a number of uses! then the demand for that commodity is said to composite in nature.

Competitive demand:
When two goods are close substitutes of one another! then the demand for such goods is said to be competitive in nature.

Derived demand:
When demand for a commodity gives rise to demand for another commodity! then it is said to be as a derived demand.

Variation in demand:
It refers to extension or contraction in demand which is exclusively due to change in the price of a product.

Changes in demand:
"hange in demand refers to increase or decrease in demand which is due to change factors other than price of the commodity.

Giffen goods:
It refers to some inferior goods which are demanded in smaller quantities when their price falls.

Direct demand:
#oods which yield direct satisfaction to a customer can be termed as the direct demand.

Direct Demand:

#oods that yield direct satisfaction to the consumers are said to have a direct demand. This demand comes from the consumers side. $emand for food! cloth and house etc. are the examples of direct demand. %ll the finished goods have a direct demand.

Derived Demand:

#oods that are needed by the producers are said to have derived demand. This demand comes from the producers side. $emand for land! labor! capital! etc. are the examples of derived demand. %ll factors of production have derived demand.

) Direct and Derived Demands Direct demand refers to demand for goods meant for final consumption; it is the demand for consumers goods like food items, readymade garments and houses. By contrast, derived demand refers to demand for goods which are needed for further production; it is the demand for producers goods like industrial raw materials, machine tools and equipments. Thus the demand for an input or what is called a factor of production is a derived demand; its demand depends on the demand for output where the input enters. In fact, the quantity of demand for the final output as well as the degree of su stitua ility!complementarty etween inputs would determine the derived demand for a given input. "or e#ample, the demand for gas in a fertili$er plant depends on the amount of fertili$er to e produced and su stituta ility etween gas and coal as the asis for fertili$er production. %owever, the direct demand for a product is not contingent upon the demand for other products. ii) Domestic and Industrial Demands The e#ample of the refrigerator can e restated to distinguish etween the demand for domestic consumption and the demand for industrial use. In case of certain industrial raw materials which are also used for domestic purpose, this distinction is very meaningful. "or e#ample, coal has oth domestic and industrial demand, and the distinction is important from the standpoint of pricing and distri ution of coal. iii) Autonomous and Induced Demand &hen the demand for a product is tied to the purchase of some parent product, its demand is called induced or derived.

"or e#ample, the demand for cement is induced y 'derived from( the demand for housing. )s stated a ove, the demand for all producers goods is derived or induced. In addition, even in the realm of consumers goods, we may think of induced demand. *onsider the complementary items like tea and sugar, read and utter etc. The demand for utter 'sugar( may e induced y the purchase of read 'tea(. )utonomous demand, on the other hand, is not derived or induced. +nless a product is totally independent of the use of other products, it is difficult to talk a out autonomous demand. In the present world of dependence, there is hardly any autonomous demand. ,o ody today consumers -ust a single commodity; every ody consumes a undle of commodities. .ven then, all direct demand may e loosely called autonomous. iv) Perishable and Durable Goods Demands Both consumers goods and producers goods are further classified into perisha le!non/ dura le!single/use goods and dura le!non/perisha le!repeated/use goods. The former refers to final output like read or raw material like cement which can e used only once. The latter refers to items like shirt, car or a machine which can e used repeatedly. In other words, we can classify goods into several categories0 single/use consumer goods, single/use producer goods, dura le/use consumer goods and dura le/use producers goods. This distinction is useful ecause dura le products present more complicated pro lems of demand analysis than perisha le products. ,on/dura le items are meant for meeting immediate 'current( demand, ut dura le items are designed to meet current as well as future demand as they are used over a period of time. 1o, when dura le items are purchased, they are considered to e an addition to stock of assets or wealth. Because of continuous use, such assets like furniture or washing machine, suffer depreciation and thus call for replacement. Thus dura le goods demand has two varieties 2 replacement of old products and e#pansion of total stock. 1uch demands fluctuate with usiness conditions, speculation and price e#pectations. 3eal wealth effect influences demand for consumer dura les. v) New and Replacement Demands This distinction follows readily from the previous one. If the purchase or acquisition of an item is meant as an addition to stock, it is a new demand. If the purchase of an item is meant for maintaining the old stock of capital!asset, it is replacement demand. 1uch replacement e#penditure is to overcome depreciation in the e#isting stock. 4roducers goods like machines. The demand for spare parts of a machine is replacement demand, ut the demand for the latest model of a particular machine 'say, the latest generation computer( is anew demand. In course of preventive maintenance and reakdown maintenance, the engineer and his crew often e#press their replacement demand, ut when a new process or a new technique or anew product is to e introduced, there is always a new demand. 5ou may now argue that replacement demand is induced y the quantity and quality of the e#isting stock, whereas the new demand is of an autonomous type. %owever, such a

distinction is more of degree than of kind. "or e#ample, when demonstration effect operates, a new demand may also e an induced demand. 5ou may uy a new 6*3, ecause your neigh or has recently ought one. 5ours is a new purchase, yet it is induced y your neigh ors demonstration.

vi) Final and Intermediate Demands This distinction is again ased on the type of goods/ final or intermediate. The demand for semi/finished products, industrial raw materials and similar intermediate goods are all derived demands, i.e., induced y the demand for final goods. In the conte#t of input/ output models, such distinction is often employed. vii) Individual and Market Demands This distinction is often employed y the economist to study the si$e of the uyers demand, individual as well as collective. ) market is visited y different consumers, consumer differences depending on factors like income, age, se# etc. They all react differently to the prevailing market price of a commodity. "or e#ample, when the price is very high, a low/income uyer may not uy anything, though a high income uyer may uy something. In such a case, we may distinguish etween the demand of an individual uyer and that of the market which is the market which is the aggregate of individuals. 5ou may note that oth individual and market demand schedules 'and hence curves, when plotted( o ey the law of demand. But the purchasing capacity varies etween individuals. "or e#ample, ) is a high income consumer, B is a middle/income consumer and * is in the low/income group. This information is useful for personali$ed service or target/group/planning as a part of sales strategy formulation. viii) otal Market and !e"mented Market Demands This distinction is made mostly on the same lines as a ove. Different individual uyers together may represent a given market segment; and several market segments together may represent the total market. "or e#ample, the %industan 7achine Tools may compute the demand for its watches in the home and foreign markets separately; and then aggregate them together to estimate the total market demand for its %7T watches. This distinction takes care of different patterns of uying ehavior and consumers preferences in different segments of the market. 1uch market segments may e defined in terms of criteria like location, age, se#, income, nationality, and so on #) $ompan% and Industr% Demands )n industry is the aggregate of firms 'companies(. Thus the *ompanys demand is similar to an individual demand, whereas the industrys demand is similar to aggregated total demand. 5ou may e#amine this distinction from the standpoint of oth output and input.

"or e#ample, you may think of the demand for cement produced y the *ement *orporation of India 'i.e., a companys demand(, or the demand for cement produced y all cement manufacturing units including the **I 'i.e., an industrys demand(. 1imilarly, there may e demand for engineers y a single firm or demand for engineers y the industry as a whole, which is an e#ample of demand for an input. 5ou can appreciate that the determinants of a companys demand may not always e the same as those of an industrys. The inter/firm differences with regard to technology, product quality, financial position, market 'demand( share, market leadership and competitiveness/ all these are possi le e#planatory factors. In fact, a clear understanding of the relation etween company and industry demands necessitates an understanding of different market structures.