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Understanding the Context

demand implies peremptoriness and insistence and often the right to make requests that are to be regarded as commands. In economics, demand is the quantity of a good that consumers are willing and able to purchase at various prices during a given time. [1][2] In economics "demand" for a commodity is not the same thing as "desire" for it. It refers to both the desire to purchase and the ability to pay for a commodity.

Key Insights

[2] DEMAND definition: 1. to ask for something forcefully, in a way that shows that you do not expect to be refused: 2…. Learn more. Demand is a consumer's willingness to buy something, and demand is generally related to the price that the consumer would have to pay. Generally speaking, demand increases when prices drop and...

Final Thoughts

Economists use the term demand to refer to the amount of some good or service consumers are willing and able to purchase at each price. Demand is based on needs and wants—a consumer may be able to differentiate between a need and a want, but from an economist’s perspective, they are the same thing. Demand is also based on ability to pay.