DEMAND

 The various quantities of a given commodity or service which consumers would buy in one market in a given period of time at various prices, or at various incomes, or at various prices of related goods.

Individual Demand Schedule

The various quantities of a commodity that a consumer would be willing to purchase at all possible prices in a given market at a given point in time, other things being equal is called individual demand. An individual demand schedule is merely a list of prices together with the quantities that will be purchased by a consumer. It is a pairing of quantity and price relationship.

At Rs. 20, the consumer will purchase 0.25 kg, at Rs. 16, 0.50 kg, and at Rs. 12, 0.75 kg and so on. As the price of the commodity decreases the quantity demanded will increase.

Market Demand

Market demand is the sum of the demand of all the consumers in a market for a given commodity at a specific point in time. Assume that in a market there are only three consumers, viz., A, B, and C, with individual demand schedules as presented in the table below. A look at the table indicates different pairs of quantity and price relationships.

Autonomous Demand and Derived Demand

The goods, whose demand is not linked with the demand of other goods are supposed to have autonomous

demand. Consumer goods are the examples here. The demand for certain goods is related to the demand for other goods, which is called derived demand. The demand for fertilizers, pesticides, etc., is a derived demand, for it is linked with the demand for agricultural products. Thus the goods which are demanded their own sake have autonomous demand, while the goods that are required to produce other goods have derived demand.

KINDS OF DEMAND

1. Price Demand: It refers to various quantities of a good or service that a consumer would be willing to purchase at all possible prices in a given market at a given point in time, ceteris paribus.

2. Income Demand: It refers to various quantities of a good or service that a consumer would be willing to purchase at different levels of income ceteris paribus.

3. Cross Demand: It refers to various quantities of a good or service that a consumer would be willing to purchase not due to changes in the price of the commodity under consideration, but due to changes in the price of related commodities.