Demand

Definition

Demand refers to the quantity of goods or services that consumers are willing and able to buy at various prices during a specific period. It represents the relationship between price and quantity demanded.

Related terms

Law of Demand: The law of demand states that as price increases, quantity demanded decreases (and vice versa), assuming all other factors remain constant.

Elasticity of Demand: Elasticity of demand measures how responsive quantity demanded is to changes in price.

Substitute Goods: Substitute goods are products that can be used as alternatives for each other. When the price of one substitute increases, demand for the other substitute may increase.