What is Demand?
Demand is the amount of goods that the customers are ready and able to buy at several prices during a given time frame.
The association between price and quantity demanded is also called as demand curve. Preferences and choices, which are the basics of demand, can be depicted as the functions of cost, odds, benefit and other variables.
The amount of a good that the customer picks up modestly, relies on the cost of the commodity, the cost of other commodities, the customer’s earnings and his or her tastes and proclivity. The amount of a commodity that a customer is ready to purchase and is able to manage and afford, provided prices of goods and customer’s tastes and preferences is known as demand for the commodity.
Determinants of Demand
There are 6 determinants of demand. The most significant part is the cost of the commodities or services. Namely :
- Demand Curve and the Law of Demand
- Deriving a Demand Curve from Indifference Curves and Budget Constraints
- Normal and Inferior Goods
- Substitutes and Complements
- Shifts in the Demand Curve
- Movements along the Demand Curve and Shifts in the Demand Curve
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Also Read: Factors affecting Demand of a Commodity