DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : K.DORASWAMY
Designation : Lecturer in CCP
Institute : Govt. Poly. for Women,
Kakinada
Semester : V Semester
Subject : Business Economics
Subject Code : CCP-502
Duration : 50minutes
Major topic : Consumer Behaviour
Sub Topic : Demand and Types of Demand
Teaching Aids : PowerPoint, Animations

CCP502.6 1
Objectives

On completion of this period, you would be able to

 Define Demand

 Explain various types of demand

CCP502.6 2
Recap

We have so far discussed --

 Definitions of Economics
 Positive & Normative Science
 Micro & Macro Economics

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Demand

 Desire for a commodity or service

 Backed by willingness
 Ability to pay

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If you wish to purchase a new motor bike, do you feel that
the demand for bikes increases?

Why?

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Demand implies three conditions :
 Desire for a commodity or service
 Willingness to pay for it
 Ability to pay

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Definitions
 “The demand for anything at a given price is the amount of which
it will be bought per unit of time at that price”
– F. Benham
 “Demand means the various quantities of goods that would be
purchased per time period at difference prices in a given market”
- Hibdon

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 When we speak of demand:
 We must also state the price-the place-the time
 The quantity demanded will be different at different
places
 Unless we state the price, demand has no meaning
 At the same price, demand may be more in market ‘A’
than in market ‘B’
 Therefore the place also should be stated

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 Demand also differs from time to time
 It may be less today and more tomorrow
 Therefore the time also should be stated
 Thus price demand means the various quantities of
commodity or service that consumers would buy in a
market in a given time at a given price

CCP502.6 9
Types Of Demand
 Individual Demand – Quantity demanded by an individual
at a particular price during a given period
 Company Demand .. Demand for the product of a
particular firm or company
 Market Demand .. Total quantity that all buyers in the
market buy at a given price during a given period
 Industry Demand .. Demand for the product of a particular
industry

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 Autonomous Demand .. Demand for a commodity
entirely independent Ex: Demand for food, clothing
etc.
 Derived Demand .. Demand linked to the purchase of
some other product Ex. Demand for tyres, Demand
for bricks
 Short Run Demand .. Demand for a shorter period of a
particular commodity
 Long Run Demand .. Demand for a longer period of a
particular commodity

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Summary

 What is Demand
 Conditions for creating Demand
 Types of Demand – Individual, Market, Company,
Industry, Autonomous, Derived, Short Run and
Long Run

CCP502.6 12
Quiz

1. Demand for a product depends on

a) Price of the product
b) Place where it is sold
c) Time at which it is sold
d) All the above

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2. The demand for Pens is an illustration for …………

a) Market Demand
b) Individual Demand
c) Derived Demand
d) Autonomous Demand

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Frequently Asked Questions

1. Define Demand
2. List the conditions for demand
3. Define Autonomous Demand
4. Define Derived Demand
5. Define Market Demand

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