Demand and Types of Demand : Economics notes class11-12

 Demand 

     Demand for a commodity refers to the quantities of a commodity, which consumers are willing and able to purchase, at various possible prices during a particular period  of time. 


Remarks

  • Demand is an effective desire, i. e.  a desire accompanied by the willingness to purchase and power  to purchase. 
  • Demand is always expressed in relation to a particular price.
  • Demand is always expressed with reference to a particular time  period.

Types of Demand :
     There are five types of  demand:  
 1. Individual demand and Market demand
 2.  Ex ante and Ex post Demand
 3.  Joint Demand
 4.  Derived Demand
 5. Composite Demand
 
  1Individual demand and Market demand :
  •  Individual demand:
     It refers to the quantity of commodity that an  individual consumer is willing to and able to purchase at various prices during a particular period of time.
   Example : Individual demand is same as household demand.
  • Market demand :

It refers to the total quantities of a commodity that all the households are willing to buy at various prices during a particular  period of time. 

   Example : Total quantity of milk which all the buyers are willing to purchase at a given price per day.

2.  Ex  Ante and Ex Post Demand  :
  • Ex Ante Demand:
Ex ante demand refers to the amount of goods that consumers want to or willing to buy during ma particular period of time. 

  • Ex Post Demand:  
   Ex Post demand refers to the amount of goods that a consumer actually purchase during a specific period.
      If the commodity is not available in adequate quantity, the quantity actually purchased will be less than the quantity that the consumer desire to purchase.

3. Joint Demand :
       It refers to the demand for two or more goods which are used jointly or demand together.
  Example:    :  An increase in the demand for car leads to a simultaneous increase in the demand for petrol as well.
   In case of joint demand, a rise in the price of one good leads to a fall in the demand for the other good and vice versa.

 4.  Derived Demand
      The demand for a commodity that arises because of the demand for some  other commodity is called derived demand. 
   Example:  Demand for steel, bricks, cement,stone,woods etc. is derived from the demand for houses and other buildings. 

5. Composite Demand  : 
   Demand for goods that have multiple uses is called composite demand.
  Example : Demand for steel arises from various uses of steel – such as in making utensils, bus bodies, room coolers, cars and so on. 

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