Types of demand:

(a) Joint/Complementary Demand

Goods are said to be in joint/complementary demand when they produce more consumer satisfaction when consumed together than when consumed separately. Examples include bread and butter, camera and film, automobile and gasoline, and cassette player and cassette.

(b) Competitive Demand

Goods are said to be in competitive demand when they all compete for the same consumer's income. Such goods are substitutes - i.e. goods that are alternative to one another in consumption. Examples are peak milk and ideal milk; pork, beef and chicken, pork meat and cow meat, etc.

(c) Derived Demand

This is where the demand for a final product leads to the demand for a second product which is used to produce this final product - i.e. if the demand of a product is not for its own sake, but for the manufacturer of another product which is in demand. For example, the demand for furniture derives the demand for wood, the demand for petrol derives the demand for crude oil. Generally, demand for any factor of product is a derived demand.

(d) Composite Demand

A commodity is said to have a composite demand when it is demanded for alternative uses. For example, wood has composite demand because it is demanded for several alternative uses such as the making of table, chairs, windows, doors, body of vehicles, leather for making shoes, belt, briefcase andand so on.