State the types of demand.
Demand is generally classified on the basis of various
factors, such as nature of a product, usage of a product, number of consumers
of a product, and suppliers of a product.
The different types
of demand are as follows:
i. Individual and Market Demand:
It refers to the classification of demand of a product based
on the number of consumers in the market.
Individual demand can be defined as a quantity demanded by
an individual for a product at a particular price and within the specific
period of time.
Market demand is the aggregate of individual demands of all
the consumers of a product over a period of time at a specific price, while
other factors are constant.
ii. Organization and Industry Demand:
This refers to the classification of demand on the basis of
market.
The demand for the products of an organization at given
price over a point of time is known as organization demand.
The sum total of demand for products of all organizations in
a particular industry is known as industry demand.
iii. Autonomous and Derived Demand:
This refers to the classification of demand on the basis of
dependency on other products.
The demand for a product that is not associated with the
demand of other products is known as autonomous or direct demand. The autonomous demand arises due to the
natural desire of an individual to consume the product.
On the other hand, derived demand refers to the demand for a
product that arises due to the demand for other products. Moreover, the demand for substitutes
and complementary goods is also derived demand.
iv. Demand for Perishable and Durable Goods:
This refers to the classification of demand on the basis of
usage of goods. The goods are divided into two categories, perishable goods and
durable goods.
Perishable or non-durable goods refer to the goods that have
a single use.
On the other hand, durable goods refer to goods that can be
used repeatedly.
v. Short-term and Long-term Demand:
This refers to the classification of demand on the basis of
time period.
Short-term demand refers to the demand for products that are
used for a shorter duration of time or for current period. This demand depends
on the current tastes and preferences of consumers.
On the other hand, long-term demand refers to the demand for
products over a longer period of time.
Generally, durable goods have long-term demand.
Demand is generally classified on the basis of various factors, such as nature of a product, usage of a product, number of consumers of a product, and suppliers of a product.
The different types of demand are as follows:
i. Individual and Market Demand:
It refers to the classification of demand of a product based on the number of consumers in the market.
Individual demand can be defined as a quantity demanded by an individual for a product at a particular price and within the specific period of time.
Market demand is the aggregate of individual demands of all the consumers of a product over a period of time at a specific price, while other factors are constant.
ii. Organization and Industry Demand:
This refers to the classification of demand on the basis of market.
The demand for the products of an organization at given price over a point of time is known as organization demand.
The sum total of demand for products of all organizations in a particular industry is known as industry demand.
iii. Autonomous and Derived Demand:
This refers to the classification of demand on the basis of dependency on other products.
The demand for a product that is not associated with the demand of other products is known as autonomous or direct demand. The autonomous demand arises due to the natural desire of an individual to consume the product.
On the other hand, derived demand refers to the demand for a product that arises due to the demand for other products. Moreover, the demand for substitutes and complementary goods is also derived demand.
iv. Demand for Perishable and Durable Goods:
This refers to the classification of demand on the basis of usage of goods. The goods are divided into two categories, perishable goods and durable goods.
Perishable or non-durable goods refer to the goods that have a single use.
On the other hand, durable goods refer to goods that can be used repeatedly.
v. Short-term and Long-term Demand:
This refers to the classification of demand on the basis of time period.
Short-term demand refers to the demand for products that are used for a shorter duration of time or for current period. This demand depends on the current tastes and preferences of consumers.
On the other hand, long-term demand refers to the demand for products over a longer period of time.
Generally, durable goods have long-term demand.
