Demand
Demand is the amount of a good/service that a consumer is willing & able to purchase at a given price in a given time period.
As you can see here , this is the report of milk ,
this is the example of law of demand
Effective Demand
Effective demand is where the willingness to buy is backed by the ability to pay. For example, when you want a laptop but you don't have the money, it is called demand. When you do have the money to buy it, it is called effective demand. The effective demand for a particular good or service is called quantity demanded.
Difference Effective Demand and Demand
Demand is different from want or need want / need means having the desire for a good or services without the ability to pay for it. Effective demand refers to desire backed up the ability to pay for the commodity.
Price demand: It refers to various types of quantities of goods or services that a customer will buy at a quoted price and given time, considering the other things remain constant.
Income demand: It refers to various types of quantities of goods or services that a customer will buy at different stages of income, considering the other things remain constant.
Cross demand: This means that the product’s demand does not depend on its own cost but depends on the cost of the other related commodities.
Direct demand: When goods or services satisfy an individual’s wants directly, it is known as direct demand.
Derived demand or Indirect demand: The goods or services demanded or needed for manufacturing the goods and satisfying the consumer indirectly is known as derived demand.
Joint demand: To produce a product there are many things that are related to each other, for example, to produce bread, we need services like an oven, fuel, flour mill, and more. So, the demand for other additional things to produce a product is known as joint demand.
Composite demand: A composite demand can be described when goods and services are utilised for more than one cause. Example: Coal
Do the changes as we discussed
Definition of demand and effective demand
rewite the Difference Effective Demand and Demand