What is Demand? Definition, Meaning & Example
The quantity of a good or service that consumers are willing and able to buy at a given price.
TL;DR: The quantity of a good or service that consumers are willing and able to buy at a given price.
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Demand: The quantity of a good or service that consumers are willing and able to buy at a given price.
Explanation
Demand is inversely related to price: as price increases, quantity demanded usually decreases. Factors affecting demand include income, preferences, availability of alternatives, and expectations. Demand curves show the relationship between price and quantity demanded. Aggregate demand is the total demand in an economy. Understanding demand helps businesses set prices and production levels.
Example
When the price of mangoes decreases during harvest season, demand increases as more people can afford to buy them.
Frequently Asked Questions
What factors affect demand?
Income, preferences, prices of alternatives, expectations, and number of consumers affect demand.
What is the relationship between price and demand?
Generally, demand and price are inversely related: higher price leads to lower demand and vice versa.
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