Demand
Definition
Demand refers to the quantity of goods or services that consumers are willing and able to buy at various price levels during a specific period. It reflects consumer preferences and their willingness to pay for products.
Related terms
Supply: Supply represents the quantity of goods or services that producers are willing and able to offer for sale at different price levels during a specific period. It shows the relationship between price and quantity supplied.
Elasticity: Elasticity measures the responsiveness of demand (or supply) to changes in price or other factors. It helps determine how sensitive consumers are to price changes and how much quantity demanded will change as a result.
Substitutes and Complements: Substitutes are goods that can be used in place of each other, such as Coke and Pepsi. Complements are goods that are consumed together, like peanut butter and jelly. Changes in the prices of substitutes or complements can affect the demand for a particular product.
"Demand" appears in:
Study guides (2)
Practice Questions (4)
- What is the difference between demand and quantity demanded?
- What happens to total revenue when demand is elastic and the price increases?
- When both demand and supply are relatively elastic, what happens to the tax burden?
- What does demand being greater than marginal revenue indicate in imperfectly competitive markets?
