8/7/2019 Nature of Demand in Industrial Market

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PRESENTED BY:

 JYOTSNA, JAI &HEENA 

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INTRODUCTIONyThe demand for industrial product &

services does not exist by itself. It is derived

from the ultimate demand for consumergoods and services.

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TYPES OF DEMAND

DERIVED

DEMAND

CROSS-ELASTICITY 

DEMAND JOINT DEMAND

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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.

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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.

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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

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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.

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