Livestock Economics, Marketing and Business Management

TYPES OF DEMAND

• Price Demand: It refers to various quantities of a commodity or a service that a consumer would purchase at a given time in a market at various prices.
• Income demand: It refers to various quantities of a commodity or a service that a consumer would purchase at a given time in market at various levels of income.
• Cross demand: It means quantities of a good or service which will be purchased with reference to changes in price not of this good but of other related goods. Eg. Changes in quantity demanded of coffee with respect to changes in price of tea.
• Joint demand: Certain goods are to be used together to satisfy a particular want. Eg. Pen and Ink. The demand for such commodities is known as Joint demand.
• Composite demand: A commodity can be put to several uses and that commodity may be demanded to satisfy any want or more of such uses. The demand for such commodity is known as the composite demand. Eg. Electricity may be demanded for household uses, industrial purpose etc.
• Derived demand and Direct demand: Demand for paddy grains is direct demand whereas the demand for organic fertilizer to increase paddy grain production is derived demand.