Advertisement Remove all ads

Demand

Advertisement Remove all ads

Topics

notes

Demand Analysis:

In ordinary language, demand means a desire. Desire means an urge to have something. In Economics, demand means a desire which is backed by willingness and ability to pay. For example, if a person has the desire to purchase a television set but does not have the adequate purchasing power then it will be simply a desire and not a demand. Thus, demand is an effective desire. All desires are not demand.
In short,
 Demand = Desire + willingness to purchase + Ability to pay.

Definition of Demand :

According to Benham, “the demand for anything at a given price is the amount of it, which will be bought per unit of time at that price.”

Thus, following are the features of demand :


1) Demand is a relative concept.
2) Demand is essentially expressed with reference to time and price.

If you would like to contribute notes or other learning material, please submit them using the button below.
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×