Distinguish between : Direct Demand and Indirect Demand
Q.2 (B) (i) Distinguish between : Direct Demand and Indirect Demand
Q.2 (B) (i) Distinguish between : Direct Demand and Indirect Demand
Best answer
Answer: See the table below.
| Point | Direct Demand | Indirect Demand |
|---|---|---|
| Meaning | Demand for goods that directly satisfy human wants. | Demand for goods (factors) that are needed to produce other goods; it does not satisfy wants directly. |
| Other name | Consumer goods demand. | Derived demand. |
| Nature | Arises on its own from the consumer’s want. | Depends on (is derived from) the demand for the final goods. |
| Example | Demand for food, clothes, shoes. | Demand for labour, raw materials, machines. |
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