Price Demand
Assuming other factors as constant, a relationship between the price and demand of a commodity is known as Price Demand. Price Demand can be shown as:
Dx = f(Px)
Where,
Dx = Demand for the given Commodity
f = Functional Relationship
Px = Price of the given Commodity
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