This document provides an introduction to demand, defining it as the quantity of a commodity a consumer is willing and able to purchase at a given price over a period of time. It then describes the different types of demand, including autonomous vs derived demand, industry vs company demand, and joint vs rival demand. The document also distinguishes between consumer goods and producer goods, durable vs non-durable goods, perishable vs non-perishable goods, inferior vs superior goods, luxury goods, prestige goods, and complementary goods.

1. INTRODUCTION TO DEMAND
Made By– Animesh Sachan.

3. DemanD?
“Demand for a commodity refers to a quantity of a commodity
which a consumer is willing to buy at a given price in a given
period of time. ”
Demand = Desire + Ability to pay + Willingness to spend
Demand is a relative concept – not absolute
It is related to price , time and place.
“The demand for a commodity refers to the amount of it which
will be bought per unit of time at a particular price
( in a particular market)”.

4. Types of DemanD
1. Autonomous and Derived
Demand.
2. Industry and Company
Demand.
3. Joint and Rival Demand.

5. Autonomous and derived Demand-
Autonomous demand refers to the demand for a product
which is wanted for itself .
EXAMPLE- Demand of food , clothes etc.
Derived demand is derived from other direct demands.
EXAMPLE- Demand for a plot is direct demand but
demand for bricks is derived demand.

6. Industry and Company Demand-
Industry demand is the total demand for a product for a
particular industry.
EXAMPLE- Total demand of a two wheeler.
Demand of any particular Brand is the Company Demand.
EXAMPLE- Demand for Honda.

7. Joint and Rival Demand-
When the goods are used together to satisfy a particular
bond known as Joint demand.
EXAMPLE- It is no good having a printer without the ink to
go with it. Similarly ink cartridges are no use without a
printer.
Rival demand refers to the case of product which is
determined for two or more purposes.
EXAMPLE - Cement.

8. Different types of goods.

9. Consumer Goods
and Producer Goods
Goods used for final Consumption are called
Consumer Goods
Eg. Food, Home, Car
Goods used for production of other goods are
called Producer Goods
Eg. Plants, Machinery, Factory

10. Arbitrary Distinction
Consumer
Good
Producer
Good

11. Non-durable goods
 According to Layman, goods perishable after
use are called non-durable goods
 Later new economics definition came ; non-
durable goods are goods perishable after one
use .Eg. Bread, Milk,
 Purchased at regular intervals
 Only current demand to be met corresponding
to current conditions
 Serviceability not generally required
 Classified into perishable and non perishable
goods

12. Perishable and non Perishable goods
Perishable goods are lost after a period of time
Eg. Teaching Services, Doctor’s service,
Medicines
Non-perishable goods are not lost after a period
of time
Eg. Coal

13. Durable Goods
 Goods being used for a continued period of
time. Eg.TV, refrigerator
 It either satisfies new demand or replace old
set.
 Requires special facilities to use. Eg. Car needs
Petrol Pump, Refrigerator needs Electricity.
 Consumed by more than one person.Eg. TV,
Radio
 Serviceability is required. So segregation of
new demand and service required
 Demand analysis is heavily complex

14. Inferior Goods and Superior Goods
Inferior goods are goods whose demand
decreases as income increases.
It has negative elasticity of demand
Eg. A Man who had a recent hike in salary pay
less on cheap dress.
Superior gods are goods whose demand
increases as income increases
It has high positive elasticity of demand

15. Luxury goods
In economics, a luxury good is a good for which
demand increases more than proportionally as
income rises.
It has a high elasticity of demand
Their quality, durability or performance that are
remarkably superior to the comparable substitutes
Eg. Gold ornaments
Needs good Brand Power
With time can assume status of normal goods

16. Prestige goods
Goods which ascribe high status and value
Eg. Antique Collections, Limited Edition Goods
Bought by richest section of people

17. Complementary Goods
 A good's demand is increased when the price of
another good is decreased.
It has negative cross elasticity of demand
Eg. Pencil and Eraser consumption in case of a
accounting firm.