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Types of Demand

The document defines and provides examples of different types of demand, including direct vs indirect demand, derived vs autonomous demand, durable vs non-durable goods demand, firm vs industry demand, total market vs market segment demand, and short run vs long run demand. It also discusses concepts such as the demand schedule, demand curve, law of demand, income and substitution effects, and exceptions to the law of demand.

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ARUN KUMAR
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241 views10 pages

Types of Demand

The document defines and provides examples of different types of demand, including direct vs indirect demand, derived vs autonomous demand, durable vs non-durable goods demand, firm vs industry demand, total market vs market segment demand, and short run vs long run demand. It also discusses concepts such as the demand schedule, demand curve, law of demand, income and substitution effects, and exceptions to the law of demand.

Uploaded by

ARUN KUMAR
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Recall

• Demand schedule
• Demand curve
• Law of Demand
• Income effect
• Substitution effect
• Law of diminishing marginal utility
• Exceptions to Law of Demand

Aruna.P.Remeshn, AP/MBA - Unit 2 -


06/9/2019 1/11
Managerial Economics
Types of Demand
• Direct and Indirect Demand
• Derived and Autonomous Demand
• Durable and Non-durable Goods Demand
• Firm and Industry Demand
• Total market and Market Segment Demand

Aruna.P.Remeshn, AP/MBA - Unit 2 -


06/9/2019 2/11
Managerial Economics
Direct Demand Indirect Demand
• Demand for goods that • Demand for goods that
are directly used for are not used by
consumption by the consumers directly.
ultimate consumer. They are used by
• Also called as producers for producing
consumer’s goods other goods.
demand. • Also called as
• Eg: Biscuits, Chocolates, producer’s goods
shirts, etc. demand.
• Eg:Cotton, Coal, steel,
etc.
Aruna.P.Remeshn, AP/MBA - Unit 2 -
06/9/2019 3/11
Managerial Economics
Derived Demand Autonomous Demand
• Demand for goods that • Demand for goods in
helps in further direct consumption.
production of
commodities. • Eg: Pens, Notebooks,
• Eg : Raw materials, Bags etc
labour, machines, etc.
• If demand for final
product goes up, the
demand for derived
demand goods also goes
up.
Aruna.P.Remeshn, AP/MBA - Unit 2 -
06/9/2019 4/11
Managerial Economics
Durable Goods Demand Non-durable Goods Demand
• Durable goods are those • Non durable goods are
that can be used more the ones which cannot
than once, over a period be used more than once.
of time. • Demand for those goods
• Demand for those goods are called as Non-
are called as Durable Durable Goods Demand
Goods Demand. • Eg: Eatables,
• Eg : Clothes, Washing photographic film,
machine, mobile phones, soap,etc.
etc.

Aruna.P.Remeshn, AP/MBA - Unit 2 -


06/9/2019 5/11
Managerial Economics
Firm Demand Industry Demand
• Demand for the product • Demand for the product
of a particular firm is of a particular industry
known as firm demand. is known as Industry
• Eg : Demand for Benz demand.
cars, Demand for • Eg : Demand for cars,
Sunfeast biscuits, etc Demand for biscuits,etc.

Aruna.P.Remeshn, AP/MBA - Unit 2 -


06/9/2019 6/11
Managerial Economics
Market Segment Demand Total Market Demand
• Demand for the product • Total demand for the
in a specific market product from all market
segment. segments.
• Different individual • Several market segments
buyers together may together may represent
represent a given market the total market.
segment. • Demand for titan
• Demand for titan watches in home and
watches in India. foreign markets together.

Aruna.P.Remeshn, AP/MBA - Unit 2 -


06/9/2019 7/11
Managerial Economics
Short Run Demand Long Run Demand

• Refers to demand with • Refers to the demand which


its immediate reaction does not react immediately due
to price change.
to price changes,
• It will take some time for
income fluctuations,
change in demand.
etc. for goods that are
• It refers to that which will
demanded over a short ultimately exist as a result of
period of time. the changes in pricing,
• Eg: fashionable promotion or product
consumer improvement, after enough time
has been allowed to let the
goods(clothes),
market adjust itself to the new
umbrella, raincoats, situation.
etc.
06/9/2019
Aruna.P.Remeshn, AP/MBA - Unit 2 -
Managerial Economics
8/11
Summary
Types of Demand
• Direct and Indirect Demand
• Derived and Autonomous Demand
• Durable and Non-durable Goods Demand
• Firm and Industry Demand
• Total market and Market Segment Demand

Aruna.P.Remeshn, AP/MBA - Unit 2 -


06/9/2019 9/11
Managerial Economics
Thanks…

Aruna.P.Remeshn, AP/MBA - Unit 2 -


06/9/2019 10/11
Managerial Economics

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