Demand for Consumers’ Goods and Producers’ Goods:
Those final goods which directly satisfy the wants of the consumers are known as consumers’ goods. For example milk, bread, clothes, pen, furniture, etc. Producers’ goods, on the other hand, are those goods which help in the production of other goods, which eventually satisfy the wants of the consumers directly or indirectly. For example plants, machines, industrial and agricultural raw material, etc. The demand for consumers’ goods is referred to as direct, or autonomous demand, whereas the demand for producers’ goods is called derived demand since they are demanded the production of other goods.
Demand for Perishable and Durable Goods:
Consumers’ and producer’s goods can be further classified into perishable and durable goods. As per economics, those goods which are used up in a single act of consumption are known as perishable goods. Whereas, the goods which can be used time and again for a certain person of time are known as durable goods.
In other words, it can be stated that perishable goods are consumed automatically whereas only the services of durable goods are consumed. Perishable goods include all types of services, raw materials, foodstuffs, etc. Durable goods consist of machines, buildings, furniture’s, etc.
The distinction between perishable and durable goods plays a significant role in demand analysis. Because durable goods tend to create more complex problems in economics than nondurable goods. Non-durable goods or the perishable goods are generally sold in order to meet the current demands based on existing conditions. Whereas, the sale of durable goods leads to an increase in the stock of available goods, whose services are supposed to be consumed over a period of time.
Derived and Autonomous Demand:
Derived demand refers to the demand, which is dependent upon the demand for some other goods. For example, the demand for petrol is dependent upon the demand for cars. Autonomous demand refers to the demand, which is independent of the demand for other products.
Price elasticity of derived demand is generally lesses as compared to that of the autonomous demand. The presence of other components of production having sticky demand dilutes the impact of price in case of derived demand.
Industry and Company Demand:
The total demand for the products of a particular industry refers to the industry demand. Whereas the demand for the products of a particular company (firm), refers to the company demand. While industry demand constitutes the demand of all firms producing similar products, company demand refers to the demand by a specific company. Price elasticity of industry demand is less as compared to the price elasticity of company demand.