TYPES OF DEMANDS

1.PRICE DEMAND
2.INCOME DEMAND
3.CROSS DEMAND
4.INDIVIDUAL AND MARKET DEMAND
5.JOINT DEMAND
6.COMPOSITE DEMAND
7.DIRECT AND DERIVED DEMAND
 Price Demand
Price demand relates to the amount a consumer is
willing to spend on a product at a given price. 

Price demand can be mathematically expressed as

follows:
DA = f (PA) where,
DA = Demand for product A
f = Function
PA =Price of product A
 Income Demand
As consumers make more income, quantity demand
increases. This means people will buy more overall
when they earn more income. Tastes and expectations
also change with an increase in income, reducing the
size of one market and increasing the size of another.
Consumers will often buy a product or service because
it is what they can afford but may deem lower quality.
The demand for those lower-quality products will
decrease as income increases.

Relationship between demand and income can be

mathematically expressed as follows:
DA = f (YA ), where,
DA = Demand for commodity A
f = Function
YA = Income of consumer A
 Cross Demand
Cross demand refers to the demand for different
quantities of a commodity or service whose demand
depends not only on its own price but also the price of
other related commodities or services.

For example, tea and coffee are considered to be the substitutes

of each other. Thus, when the price of coffee increases, people
switch to tea. Consequently, the demand for tea increases. Thus, it
can be said that tea and coffee have cross demand.
Mathematically, cross demand can be expressed as follows:
DA = f (PB), where,
DA = Demand for commodity A
f = Function
PB = Price of commodity B
Individual and Market Demand
This is the classification of demand based on the number of consumers in
the market. In dividual demand refers to the quantity of a commodity or
service demanded by an individual consumer at a given price at a given
time period.
For example, the quantity of sugar that an individual or household purchases in a month
is the individual or household demand. The individual demand of a product is influenced
by the price of a product, income of customers, and their tastes and preferences.

 Market demand is the aggregate of individual demands of all the consumers

of a product over a period of time at a specific price while other factors are
constant.
For example, there are four consumers of sugar (having a certain price). These
four consumers consume 30 kilograms, 40 kilograms, 50 kilograms, and 60
kilograms of sugar respectively in a month. Thus, the market demand for sugar is
180 kilograms in a month.
 Joint Demand
Joint demand is the demand for complementary
products and services. These can be products that are
accessories for others or that people commonly
purchase together.
# For example, cereal and milk or peanut butter and
jelly. The two are linked but demand for one is not
necessarily dependent on the demand for the other.
Composite Demand

Composite demand happens when there are

multiple uses for a single product. For example,
corn can be used as animal feed, ethanol and food
in its whole form. The rise in demand for any of
these products leads to a shortage in supply for the
others. This shortage can lead to a rise in price.
Direct and Derived Demand

Direct demand is the demand for a final good. Food, clothing and cell phones
are an example of this. Also called autonomous demand, it's independent of
the demand for other products.

Derived demand is the demand for a product that comes from the usage of
others. For example, the demand for pencils will result in the demand for
wood, graphite, paint and eraser materials. In this example, the demand for
wood is dependent on the demand for its uses.