Question

Define demand. (b) List three types of demand.(c) Explain one type of demand.

Answer 1

Answer:

Demand is the number of goods that the customers are ready and able to buy at several prices during a given time frame. The association between price and quantity demanded is also called a Demand curve. Preferences and choices, which are the basics of demand, can be depicted as the functions of cost, odds, benefit and other variables.

The amount of a good that the customer picks up modestly, relies on the cost of the commodity, the cost of other commodities, the customer’s earnings and his or her tastes and proclivity. The amount of a commodity that a customer is ready to purchase and is able to manage and afford, provided prices of goods and customer’s tastes and preferences are known as demand for the commodity.

In our daily life, we often see that a consumer’s preferences for product change according to their preferences, income, and the prices of the goods or prices of other goods.

Here, the demand of a product can be defined as the quantity of a product that a consumer is eager to purchase, can afford at a given price, and is according to his/her preferences and taste. Whenever there is a change in any of those variables than the demand and supply of a product starts changing.

Types of Demand:

Market or Individual Demand- Here, the individual demand is defined as the demand for products or services by an individual consumer. And the market demand can be defined as a demand for a product made by a bunch of consumers who buy that product. Therefore, the market demand is a collective demand of each individual’s demand.

Director Derived Demand: The direct demand is defined when goods manufactured is related to the demand for another product is known as the derived demand. For example; the demand for a silk yarn is the result of the demand for silk cloth. However, direct demand for goods can be defined when the demand for a product is independent. For example, there is an autonomous demand for cotton cloth.

Price Demand- The price demand refers to the number of goods or services an individual is eager to buy at a given price.

Income Demand- The income demand means the eagerness of a person to buy a definite quantity at a given income level.

Cross Demand: This is one of the important types of demand where the demand of a product is not subject to its own price, but the price of other similar products is known as the cross demand

Explanation:

Answer 2

Demand is an economic principle referring to a consumer's desire to purchase goods and services and willingness to pay a price for a specific good or service. Holding all other factors constant, an increase in the price of a good or service will decrease the quantity demanded, and vice versa.