Answer: Demand is desire backed by willingness and ability to pay at a given price and time. Its types are:
- Direct demand: Demand for goods that directly satisfy human wants, e.g. food, clothes. It is also called consumer goods demand.
- Indirect (derived) demand: Demand for goods or factors needed to produce other goods, e.g. labour, raw materials, machines. It is derived from the demand for the final product.
- Joint (complementary) demand: When two or more goods are demanded together to satisfy one want, e.g. car and petrol, pen and ink.
- Composite demand: When a commodity can be put to several uses, e.g. electricity for lighting, cooking and running machines.
- Competitive demand: Demand for goods that are substitutes for each other, e.g. tea and coffee.
