Types of Demand

There are three types of demand 1) price demand 2); Income demand 3) cross demand.

1) Price demand refers to various quantities of a commodity that a consumer buys  at a given point of time at different prices in a

 market.it is assume that other things like income of the consumer, prices of other related goods etc. remain the same. 

2) income demand refers to different quantities of commodity on service which consumer will be at different levels of income other things remaining the same. Income demand changes with the change in the nature of the commodity . For normal goods the income demand will be positive meaning thereby when the income increases people buy more of these goods. For inferior goods the slope will be negative, which means as income increases people buy less of these goods.

3) Cross demand refers tothe quantities of the commodities or service which would be purchased with reference to change in not of that particular commodity but of other inter- related commodities other things remaining the same. For eg. Quantity Demanded for tea changes when price of coffee changes .(substitute goods). Likewise if the price of pen increases then the quantity demanded for ink also falls ( complementary goods).