Demand means a consumer’s desire to buy goods and services without any hesitation to pay the demanded price for it. In simple words, demand is the number of products that the customers are ready and willing to buy at several prices during a given time frame is known as demand for the commodity.
Preferences and choices are the basics of demand and are categorized in terms of the cost, benefits, profit and other variables. The factors affecting demand depends on the value of the commodity, the price of other products, the customer’s earnings and their tastes and preferences.
The graphical presentation of a demand curve shows the link between the cost and quantity of a commodity demanded for a specified period. Usually, the value is represented on the left vertical axis, the amount demanded on the horizontal axis, which is called a demand curve.
Types of demand
- Individual and Market Demand – A quantity of a product an individual order at a particular rate and a specific period is known as individual demand. The demand is affected by the cost of goods, customer’s income, and their tastes and preferences. On the other hand, the total quantity of a product demanded by an individual at a particular time and price is considered as market demand.
- Organization Demand – A product’s demand for a firm at a given cost over time is called organization demand.
- Autonomous and Derived Demand – A product’s demand that is not linked with other product’s demand is identified as autonomous or direct demand. The autonomous demand occurs when an individual has a natural desire to consume the commodity. Similarly, the demand that rises due to other products demand is known as derived demand.
- Perishable and Durable Goods Demand- A perishable goods are the goods that are used or consumed only ones. For instance, coal, eatables cement, and fuel. However, durable products are those goods that can be used repeatedly. For example, shoes, clothes, buildings, and machines.
- Short-term and Long-term Demand – Short-term demands are those demands of a product that are used for the short term. This demand especially relies on the consumer’s preferences and current tastes. Similarly, long-term demand are those products demand that can be utilized for a longer period of time.
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