types of demand
- Created by: tristan.magson
- Created on: 20-03-18 09:33
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- Types of demand
- Joint demand
- The relationship between two or more commodities or services when they are demanded together.
- There is joint demand for cars and petrol, pens and ink, tea and sugar, etc. Jointly demanded goods are complementary.
- Derived demand
- Derived demand is demand that comes from the demand for something else. Thus, the demand for machinery is derived from the demand for consumer goods that the machinery can make. ...
- Demand for bricks is derived from spending on new construction projects.
- Composite demand
- Composite demand happens when goods or services have more than one use so that an increase in the demand for one product leads to a fall in supply of the other.
- E.g. milk which can be used for cheese, yoghurts, cream, butter and other products. If more milk is used for manufacturing cheese, ceteris paribus there is less available for butter
- Individual demand
- Shows the purchasing preferences and utility for the product by an individual
- Market demand
- Market demand is the sum of the individual demand for a product from buyers in the market
- Law of demand
- Demand is the quantity of a good or service that consumers and businesses are willing and able to buy at a given price in a given time period
- Joint demand
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