1.2.2
Demand
The quantity of a product that consumers are willing and able to buy at a given price in each time.
Effective Demand
When a desire to buy a product is backed up by having an ability to pay
Derived Demand
The demand for a factor of production used to produce another good or service e.g steel, transport, cobalt or cloud computing infrastructure
Composite Demand
Where goods have more than one use e.g land, milk and corn
Potential (latent) Demand
demand that is not yet expressed in the market because consumers do not have the ability to pay
Joint Demand
When the demand for one product is directly and positively related to market demand for a related good or service
Basic Law of Demand
Inverse relationship between the price of a good and demand
As price falls, expansion/extension of demand
If price rises, there will be a contraction of demand