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Definition: Demand

It is the ability and the willingness of a consumer to purchase goods or service. Quantity demanded is the amount of economic goods and services which a consumer is willing to purchase at a given price.

The demand is determined by various factors such as: -

  • Price of the good
  • Price of Substitute goods
  • Price of Complementary goods
  • Income of the consumer
  • Taxes levied by the government on that good/service
  • Future expectation of price of the goods/services
  • Tastes and Preferences of the consumer etc.

The law of demand states that the quantity demanded is inversely related to the price of the good/service.

Browse the definition and meaning of more terms similar to Demand. The Management Dictionary covers over 7000 business concepts from 6 categories. This definition and concept has been researched & authored by our Business Concepts Team members.

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