Types of Demand

Individual Demand

Quantity demanded of a good or service by individual consumers at different prices

Market Demand

Aggregate quantity of a good or service that would be demanded by all consumers in a market at different prices

Derived Demand

Demand for a good for its use in production of other goods (raw materials like timber for furniture or steel for buildings)

Composite Demand

Applies where goods have more than one use. An increase in demand for one product can result in a fall in supply of another product. (ex. milk. Lots of uses. Rise in ice cream demand may cause fall in supply of butter)

Joint Demand

Complementary goods that are often bought and sold together. Need both goods in order to achieve utility/satisfaction. (Ex. car and petrol)

Effective Demand

Refers to the willingness and the ability of consumers to purchase goods/services at different prices. Demand backed by purchasing power (I want it and I can afford it.)

Demand Schedule

Table that gives the quantities of a good/service that would be demanded by consumers at different prices.