In general terms, demand is used in the sense of longing or desire. But in economics, demand is not just a desire or desire, but demand is a desire of a human being for the fulfillment of which the person who wishes has the purchasing power, i.e. rupee money (which is the cost of thing you want to purchase). Otherwise, the desire or desire to obtain an object cannot become a demand.
For example, any person who cannot afford to buy a car and wishes or aspires to buy a car, then this desire or aspiration cannot be fulfilled unless he has the money to pay for the cost of the car. So his wish will remain just a wish. Therefore, in economics, two conditions must exist for the demand for a commodity.
- Intent and willingness to acquire the item
- Affordability or purchasing power to purchase the item
Leofinance is a platform for finance discussion. As a member of the Leofinance community and to understand the meaning of demand, it is important to keep the following points in mind.
- Demand and price are closely related. So the demand for a commodity is always associated with a certain price. Without this, we cannot estimate the exact demand of any commodity. For example, when the price of a commodity decreases, the demand for that commodity increases. Therefore, if the price of an item is not known, it is difficult to estimate the quantity of the item to be purchased. It proves that demand is the quantity of a good that a consumer is willing to buy at a particular price.
- Demand is always estimated in terms of a particular time because a commodity may be demanded for a day, a week or even a month. So demand refers to the quantity of a commodity that consumers are willing to buy at a particular price in a particular period of time.
- There is an inverse relationship between demand and price, that is, when the price of a commodity increase, the demand for that commodity decreases because when a consumer gets the commodity at a higher price, he will buy less, and similarly, when the price decreases, the demand increases because when the consumer gets the commodity at a lower price, he will buy more.
Kinds of Demand:
The main types of demand are as follows.
Derived Demand:
The demand for some goods is derived from the demand for other goods. For example, if the demand for goods and services increases, the demand for factors of production (such as labor, capital, land, and managers) increases. Because these factors of production help in producing goods and services. It is evident from this that the demand for the factor of production is derived from the demand for goods and services.
Complementary Demand:
When the consumption of one commodity depends on the availability of another commodity, it is called complementary demand. For example, the availability of balls for cricket bats is called supplementary demand. Similarly, inkpot for pen, pedal for car, etc. fall in the category of supplementary demand.
Composite Demand:
When goods have more than one use, their demand is called mixed demand. For example, electricity, coal, wood and gas are used for many purposes. Therefore, the demand for these goods will be called mixed.
Demand for Substitute Goods:
The demand for some goods can be met by exchange. If thirsty, plain water or any drink can be used to quench the thirst.
Great News Shared in Wen Soon AMA:
- Leofinance has a proposal for DHF funds for the Marketing and Onboarding of new users for Hive.
- Now Leofinance is on the 28th number in the Hive witness list. Leofinance will do campaigning to be one of the top 20 Hive Witness.
So, Everyone Should cast a Vote of Witness for Leofinance as Soon as Possible.
About LeoFinance
LeoFinance is a blockchain-based Web3 community that builds innovative applications on the Hive, BSC, ETH and Polygon blockchains. Our flagship application: LeoFinance.io allows users and creators to engage & share micro and long-form content on the blockchain while earning cryptocurrency rewards.
Our mission is to democratize financial knowledge and access with Web3.Twitter: https://twitter.com/FinanceLeo Discord: https://discord.gg/E4jePHe Whitepaper: https://whitepaper.leofinance.io
Our Hive Applications
Join Web3: https://leofinance.io/ Microblog on Hive: https://leofinance.io/threads Delegate HIVE POWER: Earn 16% APR, Paid Daily. Currently @ 2.8M HP Hivestats: https://hivestats.io LeoDex: https://leodex.io LeoFi: https://leofi.io BSC HBD (bHBD): https://wleo.io/hbd-bsc/ BSC HIVE (bHIVE): https://wleo.io/hive-bsc/ Earn 50%+ APR on HIVE/HBD: https://cubdefi.com/farms
Web3 & DeFi
Web3 is about more than social media. It encompasses a personal revolution in financial awareness and data ownership. We've merged the two with our Social Apps and our DeFi Apps:
CubFinance (BSC): https://cubdefi.com PolyCUB (Polygon): https://polycub.com Multi-Token Bridge (Bridge HIVE, HBD, LEO): https://wleo.io