TYPES OF DEMAND

                      TYPES OF DEMAND

 it is important to note that demand reflects consumer's behavior. Therefore to analyse the consumer's behavior we have to understand a list of some contrasting types of demand. 

(i) Individual vs Market demand.

 (ii) Market segments vs Total market demand

. (iii) Company vs Industry demand
.
 (iv) Domestic vs National demand.

 (v) Direct vs Derived demand.

 (vi) Autonomous vs Induced demand. 

(vii) New vs Replacement demand.

 (viii) Short run vs Long run demand. 

(ix) Household vs Corporate vs Government demand. Let us now discuss some important types of demand.

 (i) Individual demand vs market demand: The consumer's choice to buy a product that maximises their personal satisfaction reflects the individual demand. The market demand for goods or service is the sum of all individual demands

. (ii) Market demand vs Total market demand: An aggregate of individual's demand from high income, middle income and low-income group yields the market demand. An aggregate of various market segment yields the total market demand

iii) Company vs Indllstry demand:

The demand of an individual company is the company's demand and the aggregate of various company's demand yields the industry's demand.

 (iv) Direct demalld vs Derived demand

: The demand for an item in response to its own price is called 'direct demand' whereas the demand for an item is called 'derived demand'

.

(v) Autonomolls vs Illdllced demand:

The demand for an item or service in response to explicit factors like price, income etc., is induced demand, whereas the same demand where the impact of implicit factors is not stated is called autonomous demand. In other words, autonomous demand is the demand for the products and services directly, whereas derived demand arises out of the purchase of a parent product.