THE THEORY OF DEMAND
CONTENT
- Types of Demand
- Change in Demand and Change in Quantity Demanded
Types of Demand
(i) Derived demand
It is the type of demand which occurs as a result of demand for other commodities. The demand for one commodity will necessitate the demand for another commodity. For example, flour and sugar are demanded because there is demand for bread. Labour is demanded to construct the highway because there is a demand for good roads. So, labour , flour and sugar are ‘’derived’’ demand commodities. Demand for all factors of production are derived demand.
(ii) Joint or complementary demand
It is a demand which occurs when two commodities that are related to each other are demanded at the same time. These two commodities are said to be complementary to each other as a change in the demand for one commodity will bring about a similar change in the demand for the other. Examples of joint demand are bread and butter, tea and milk, car and petrol. Sometimes they are described as ‘’joint demand good’’.
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ClassHall Instructor
Halima Ahmadu
Maryam