Q.Match the words from the following groups 'A' and 'B' correctly:
Group A:
a. Pen and ink
b. Perfectly elastic supply
c. Reward of entrepreneur
d. Income method
e. Credit control
Group B:

1. Factor cost method
2. Profit
3. Joint demand
4. Interest
5. Horizontal supply curve
6. Commercial bank
7. Vertical supply curve
8. Central bank

Competitive demand occurs between substitutes — tea-coffee and sugar-jaggery — so the answer is a, c.

Competitive demand is the demand for goods that are substitutes for one another; a rise in the price of one increases demand for the other because either can satisfy the same want.

• (a) Tea - Coffee — substitutes, competitive demand. Correct. …

The odd word out is Market demand. Direct demand, indirect (derived) demand and composite demand are types of demand classified by the nature/use of the good; market demand is a different basis of classification (total demand of all buyers). Odd one: Market demand.

Why: Demand can be classified in several ways. On the basis of the nature of the good and its use we get:

• Direct demand — for consumer goods that satisfy a want directly (food, clothing).
• Indirect / derived demand — for factors/producer goods whose demand flows from the demand for the final good (demand for labour, machines). …

The situation illustrates Seasonal Demand — demand for a good that arises only in a particular season of the year.

Among the types of demand, seasonal demand refers to demand that is confined to a specific time or season rather than being spread uniformly over the year. A raincoat is needed chiefly during the rainy season, just as woollens are demanded in winter an …

The missing term is Indirect demand (Derived demand). The demand for factors of production like land and labour is derived from the demand for the goods they help to produce.

Demand is classified by the reason a thing is wanted: