Definition of demand
amount of a particular economic good or service that a consumer or group of
consumers will want to purchase at a given price.
demand curve is usually downward sloping, since consumers will want to buy more
as price decreases. Demand for a good or service is determined by many
different factors other than price, such as the price of substitute goods and
complementary goods. In extreme cases, demand may be completely unrelated to
price, or nearly infinite at a given price.
with supply, demand is one of the two key determinants of the market price.
Meaning of Demand
term 'demand' is defined as the desire for a commodity which is backed by
willingness to buy and ability to pay for it.
The Law of Demand
of demand states that, if all other factors remain equal, the higher the price
of a good, the less people will demand that good.
words, the higher the price, the lower the quantity demanded. The amount of a
good that buyers purchase at a higher price is less because as the price of a
good goes up, so does the opportunity cost of buying that good.
result, people will naturally avoid buying a product that will force them to
forgo the consumption of something else they value more. The chart below shows
that the curve is a downward slope.