Competitive Demand
When two commodities are close substitutes of each other and an increase in the demand for one commodity will decrease the demand for the other commodity, then the demand for any one of the commodities is known as Competitive Demand. For example, an increase in demand for tea might decrease the demand for coffee, which makes the demand for these goods competitive demand. This happens because when consumers purchase more of one commodity (say tea), it leads to a lesser requirement for the other commodity (say coffee).
Types of Demand
In economics, demand is the quantity of a good or service that a consumer is willing and able to purchase at different price levels available during a given time period. Although demand is the desire of a consumer to purchase a commodity, it is not the same as desire. Desire is just a wish of a consumer to purchase a commodity even though he is unable to buy it. However, demand is a consumer’s desire to purchase a commodity, provided he is willing to spend and has sufficient purchasing power. Hence, we can say that the four essential elements of demand are Quantity of the commodity, Willingness of a consumer to purchase the commodity, Time period, and Price of the commodity at each quantity level.
Table of Content
- Types of Demand
- 1. Price Demand
- 2. Cross Demand
- 3. Income Demand
- 4. Joint Demand
- 5. Composite Demand
- 6. Derived Demand
- 7. Direct Demand
- 8. Competitive Demand
- 9. Alternative Demand