Examples of Market Demands

Latent Demand
Latent Demand is when a strong need for a product or service exists, but the solution is not
yet available. For example, before the invention of electric cars, there was a latent demand
for an environmentally friendly, efficient mode of personal transportation. People were
aware of the negative impacts of fossil fuels but didn't have an alternative to traditional
cars. This demand was latent until electric cars were developed and became available.

Over-Full Demand
Over-Full Demand occurs when the desire for a product exceeds the capacity to supply it. A
good example is the launch of a new, highly anticipated smartphone model. Often, initial
demand is so high that the manufacturer cannot keep up, leading to stock shortages and
long waiting lists. This is a case of over-full demand, where the available supply is less than
the market's demand.

Unwholesome Demand
Unwholesome Demand refers to the desire for products that are harmful to the consumer.
For example, cigarettes are known to be detrimental to health, yet there's a significant
demand for them. This demand is unwholesome because the product's consumption has
negative effects on the consumer's well-being.

Flow Diagram Explanation

The flow diagram can visually represent how each type of demand evolves and is addressed
in the market. For latent demand, it shows the progression from an unmet need to the
development and eventual satisfaction of that need. In over-full demand, the diagram might
depict the surge in demand post-product launch, followed by the gradual meeting of this
demand as production increases. For unwholesome demand, the flow could illustrate the
initial attraction to the product, followed by potential consequences and regulatory
responses.