DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : K.DORASWAMY
Designation : Lecturer in CCP
Institute : Govt. Poly. for Women,
Kakinada
Semester : V Semester
Subject : Business Economics
Subject Code : CCP-502
Duration : 50minutes
Major topic : Consumer Behaviour
Sub Topic : Various Types of Demand
Teaching Aids : PowerPoint, Animations

CCP 502.7 1
Objectives

On completion of this period, you would be

able to
 Define Demand
 Explain the Different Types of Demands

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Recap

We have so far discussed --

 What is demand?
 Various Types of Demands

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Individual Demand

 It relates to a single individual demand

 Differences in elasticity
 It cannot exactly show how the individual
behaves at different prices

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 Individual differences may disappear in the
collective demand
 Individual demand will influence the market
demand
 Individual demand may not influence the price

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Company Demand

 It denotes the demand for the product of a

particular company in the industry
 Ex:The demand for steel produced byTISCO

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Market Demand

 It is sum of total of individual demand in the

market
 Differences in Elasticity
 There may be continuity in the market demand

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 Inter-dependence:market demand will influence the
individual demand
 Market demand will determine the price
 When the market demand changes the price will
change

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Industry Demand
 The total demand for the products of a particular
industry
Ex: The total demand for steel in the country
 Industry covers all the firms producing close substitutes
for product although the brand name differs Ex:-tooth
pastes:
 Colgate
 Cibaca
 Pepsodent
 Close-up
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 Firms producing distinct substitutes like biscuits
and oils are not treated as one industry
 This demand denotes the total quantity that will be
bought from all the firms at a given price
 It can be classified customer group-wise or area-
wise

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Summary

 Individual Demand
 Market Demand
 Company Demand
 Industry Demand

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Quiz

1. Your family’s demand for a particular product is

termed as _________
a) Individual Demand
b) Market demand
c) Industry Demand
d) Company demand

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Frequently Asked Questions

1. Define Market Demand and give two examples

2. Define Industry Demand and give two examples

CCP 502.7 13