O Level Economics Types of Demand

Types of Demand

 

 

 

  1. Joint or complimentary  demand

This  is demand  for a commodity  to complete  the demand for another  commodity  . one  of the  commodity  is a compliment  to another  and  as a results  , an increase in the demand   for  one will  lead to  increase  in the demand  for another  .for  example  cars  and  petrol are jointly  demanded  because petrol  is a compliment to cars .

 

 

  1. Derived Demand

This  is the demand for a  commodity  or service  because  it is needed  on a  results of the demand  of another  commodity  or service  . for  example  thou  is  demanded  as  a results  of the  demand  of bread  or puff-puff , In Increase  in  the demand  for one product  will lead  to  an  increase  in the demand for the  other

 

  1. Composite Demand

This is the  total  demand  for  a commodity  use for several  purposes for  example  flour is use for backing  of bread  , cake s  and other  food. An increase in the demand  for  bread will  increase  the supply of the flour  use  for  bread  and reduces  the supply  of flour  use for  baking  cake . This  will increase  the price of the  flour  and cake  and  consequently the demand for cake  will  fall

 

  1. Competitive Demand

It is the  demand  for goods  which  are  substitutes  .An  increase  in  the demand  for one  will reduce the demand  for  the other  and a  decrease  on the demand  for one  will  increase  the demand  for the  other  . for  example  savon Azur  and  C.C.C savon  are  on competitive

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