Demand And Supply (law of demand, law of supply, curve,schedule)

Demand And Supply

Demand is depend on customer want total quantity customers are willing and able to purchase is called demand.

there are two types of demand.

Direct demand:

direct demand are those good and services which satisfy consumers desires.

for example: consumer electronics

Derived Demand/indirect demand

Derived Demand is a that demand which depend on other good or services demand. sometimes we called it intermediate or related good and services.

for example: Cement is demanded due to demand for housing or steel is demanded due to demand for automobiles.

Joint Demand

those good and services which are link together when one product demand is increase other product or service demand also increase.

for example: Ink and pen or Petrol and bike. these are the best examples for joint demand.

Competitive Demand:

Those product/services which are close substitute of each other are called Competitive demand.

for example: tea and coffee

Composite demand:

Composite demand define those good or services which are use for multi-purposes are called Composite demand.

for example: Milk and electricity

law of demand state that when price will increase, demand will be decrease. when price will decrease , demand will be increase.

logic’s behind the law:

when price will be increase some people lose purchasing power and some people go for substitute product/service.

Demand schedule shows that when price is increasing demand will be decreasing

The quantity supplied is the number of units that seller want to sell over a specific period of time at a particular price.

In simple words the total products (goods or services) available for purchase at any specific price is called supply.

Law of supply state that all other factors remaining unchanged the supply of a good increase when price is increase.

Supply schedule state that when price is increasing supply is also increasing