The willingness to buy a commodity or a service for which necessary resources are available is known as demand. Both desire and resourcefulness are essential requirements for demand. An individual or a family will have demand for several things like food, house, computer, clothes, medicine, car, education, health care, entertainment, and so on to satisfy various wants. The use of such commodities and services to satisfy the needs or wants is called consumption. There are different types of demand and this article briefly explains different types of demand.
It refers to the demand for a commodity that is demanded to satisfy human wants (demand for the ultimate object). It could be price demand, income demand, and cross demand.
It refers to the various quantities of commodities or services that a consumer would purchase at a given price in a market, ceteris paribus. It expresses the negative relationship between price and demand for goods and services with normal goods. The price demand curve for a normal good is downward sloping.
It refers to the relationship between income and quantity demanded made by the users. Income demand describes merely the association stuck between income and quantity demanded of goods and services. It is inverse in the case of demand for inferior goods and positive in the case of normal goods. The income demand curve in the case of an inferior good is downward sloping and upward sloping in the case of normal goods.
Cross demand expresses the relationship between the demand for one good and the price of the related good. It refers to the various quantities of a good, that will be purchased regarding the change in the price of the related goods. Related goods are also of two types as substitute goods and complementary goods. In the case of substitute goods, there is a positive relationship between the price of one good and the quantity demand of other related goods. Similarly, in the case of complementary goods, there is a negative relationship between the price of one good and the quantity demand for other related goods. The demand curve is downward sloping in the case of substitute goods and upward sloping in the case of complementary goods.
The demand that evolves because of the demand for some other commodity is known as derived demand. In economic classification, demand for goods and services/raw materials that are needed to produce other goods and services is called derived demand. For example, the demand for steel, bricks, cement, stones, wood, etc. is a derived demand. Derived demand thus mostly connects to the demand for inputs.
It refers to the number of goods that consumers want or willing to buy during a particular time. It is thus planned and the desired amount of demand.
It refers to the number of goods that the consumers purchase during a specific time. Thus, it is the number of goods bought. The number of goods purchased may not be like the amount that the consumer desire to purchase.
It refers to the demand for two or more goods that are used jointly or demanded together. For example, car and petrol, butter and bread, milk, and sugar, etc. The demand for the goods having joint demand alters concurrently.
Demand for goods that give numerous utilizes is composite demand. For instance, the demand for steel arises from various uses of steel like the use of steel in making vehicle bodies, room coolers, cars, and so on. If a commodity has several alternative uses, then such a commodity has composite demand.
If the demand for one good is wholly influenced by the price of its close substitute, then this is competitive demand. Goods that are close substitutes with each other are said to be in competitive demand. Ceteris paribus, the demand for good changes when the price of its substitutes changes. The demand for mobile Samsung and Apple phones may be taken as an example of competitive demand.
Individual demand refers to the demand for a commodity by a single consumer. It is the quantity of a commodity that an individual consumer is willing to purchase at various prices during a given period. An individual consumer is known as a household in economics. Thus, individual demand and household demand are the same things.
The sum of demand by all individuals or households for a commodity is called market demand. The total quantity of a commodity that all the households are willing to buy at various prices during a given time is known as market demand.
Demand refers to both the desire to purchase and ability to pay for a commodity. It is an effective desire of the consumer in which he/she is able to pay and willing to pay for that. There are different types of demand based on different factors.