Demand vs Quantity demanded

Demand – wants or needs

Quantity demanded – wants/needs based on your purchasing power

Two types of demand.

 Direct demand it is the quantity of a good/service that customers are willing and able to
purchase during a specified period under a given set of economic decisions
 Derived demand is when products are demanded not for direct consumption but rather for their
use in providing other goods and service

Determinants of derived demand.

1. Marginal benefit } comparative selection of alternatives

2. Marginal (cost)

Determinants of Demand.

1. Price effect
2. Substitution effect
3. supplementary effect
4. Price expectation effect
5. Income effect (normal/ inferior good)
6. Promotional effect.

Basically, there are many factors behind demand.