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PRINCIPLES OF ECONOMICS

2. Demands

2.3. Types of demand

Demand can be categorized into several types based on different criteria. Here are some common types:

  1. Individual Demand: The demand for a good or service by a single consumer.

  2. Market Demand: The total demand for a good or service from all consumers in the market, derived by aggregating individual demands.

  3. Derived Demand: Demand for a good or service that arises from the demand for another good or service. For example, the demand for steel is derived from the demand for cars.

  4. Joint Demand: When two or more goods are demanded together because they complement each other, such as printers and ink cartridges.

  5. Composite Demand: Demand for a good that has multiple uses. For example, the demand for sugar can come from the food industry, beverages, and pharmaceuticals.