Date post: | 09-Apr-2018 |
Category: |
Documents |
Upload: | rajuarora40 |
View: | 565 times |
Download: | 21 times |
8/7/2019 Nature of Demand in Industrial Market
http://slidepdf.com/reader/full/nature-of-demand-in-industrial-market 1/8
PRESENTED BY:
JYOTSNA, JAI &HEENA
8/7/2019 Nature of Demand in Industrial Market
http://slidepdf.com/reader/full/nature-of-demand-in-industrial-market 2/8
INTRODUCTIONyThe demand for industrial product &
services does not exist by itself. It is derived
from the ultimate demand for consumergoods and services.
8/7/2019 Nature of Demand in Industrial Market
http://slidepdf.com/reader/full/nature-of-demand-in-industrial-market 3/8
TYPES OF DEMAND
DERIVED
DEMAND
CROSS-ELASTICITY
DEMAND JOINT DEMAND
8/7/2019 Nature of Demand in Industrial Market
http://slidepdf.com/reader/full/nature-of-demand-in-industrial-market 4/8
DERIVED DEMANDy INDUSTRIAL CONSUMERS BUY GOOD AND SERVICES
FOR USE IN PRODUCING OTHER GOOD ANDSERVICES ULTIMATELY WHATEVER IS FINALLY
PRODUCE WILL BE SOLD TO THE CONSUMERS.y HENCE THE DEMAND FOR INDUSTRIAL GOOD AND
SERVICES IS DERVIED FROM CONSUMER GOODS ANDSERVICES.
y FOR EXAMPLE:
y PRECISION STEEL TUBES DEMANDED FOR THEPRODUCTION OF BICYCLES, SCOOTERS&FURNITURES
WHICH ARE CONSUMED BY THE CONSUMERS.
8/7/2019 Nature of Demand in Industrial Market
http://slidepdf.com/reader/full/nature-of-demand-in-industrial-market 5/8
Joint demand
y It occurs when one industrial product is useful if other
products also exists.y For e.g. demand of tyres jointly depend on the demand
of automobiles.
8/7/2019 Nature of Demand in Industrial Market
http://slidepdf.com/reader/full/nature-of-demand-in-industrial-market 6/8
Cross elasticity of demandy Elasticity is simply the change in demand from change
in price .% are used to measure the relative change
y Demand is inelastic if % change in quantity demandedis less than % change in price.
y Demand is elastic if the % change in quantity demanded is more than % change in price
8/7/2019 Nature of Demand in Industrial Market
http://slidepdf.com/reader/full/nature-of-demand-in-industrial-market 7/8
y This concept is useful as a starting point to understandrelationship b/w price and quantity sold.
y For E.G. substitute goods: aluminium & woodComlementary goods: aluminium & door.
Aloy Wheel and General Wheel.
Tubelight and Bulb
Tubeless tyre and general tyre.
8/7/2019 Nature of Demand in Industrial Market
http://slidepdf.com/reader/full/nature-of-demand-in-industrial-market 8/8