Demand

Business, Legal & Accounting Glossary

Definition: Demand


Demand

Quick Summary of Demand


Demand is defined as the amount of a particular good or service that buyers are willing to purchase at a specific point along the supply curve (on a supply and demand schedule).




What is the dictionary definition of Demand?

Dictionary Definition


  1. The desire to purchase goods and services.
  2. economics The amount of a good or service that consumers are willing to buy at a particular price.
  3. A need.
  • v. to claim as a need, requirement or entitlement, as in to demand payment or performance under a contract. In a lawsuit for payment of a debt or performance of an act, the party suing (plaintiff) should allege that he/she/it demanded payment or performance.
  • n. a claim, such as an unqualified request for payment or other action.
  • the amount requested by a plaintiff (usually in writing) during negotiations to settle a lawsuit.
  • adj. referring to a note payable at any time a request to pay is made.

The amount of a particular economic good or service that a consumer or group of consumers will want to purchase at a given price. The demand curve is usually downward sloping, since consumers will want to buy more as price decreases. Demand for a good or service is determined by many different factors other than price, such as the price of substitute goods and complementary goods. In extreme cases, demand may be completely unrelated to price, or nearly infinite at a given price. Along with supply, demand is one of the two key determinants of the market price.


Full Definition of Demand


Demand is an economic measure, which expresses a desire, as well as the ability to pay for goods and services. In and of itself, demand is neither a physical need nor emotional desire. Rather, demand can be understood as willingness to trade things of value, such as goods, money, and labour, for variable amounts of goods and services. The degree to which the demand for goods and services varies is determined by the price asked. Thus, for example, aggregate demand is the figure which represents a total amount of goods and services demanded by the economy at a given market price. Supply is another important parameter with which demand interacts. Economists use the demand curve to calculate and express demand graphically.


Examples of Demand in a sentence


Prices usually go up when demand exceeds supply.

The boss of the company decided that he was going to start focusing only on selling televisions, as the demand for televisions was increasing rapidly.

Freedom of speech is guaranteed by the First Amendment and no one needs to demand this freedom because it is a guaranteed right by all U.S. Citizens.

Back when Playstation 5 first hit the shelves, Sony did poorly to meet the massive demand for their new console. Some believe this was done intentionally as a sales tactic but I don’t see how that works.


Related Phrases


Supply and demand
Supply curve
elasticity
equilibrium
law of deman
aggregate demand curve
regulate
oil price to natural gas ratio
J-curve
break issue
tech bubble
call
convenience yield
good
Housing Market Index
keep


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/demand/
Modern Language Association (MLA):
Demand. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
March 29, 2024 https://payrollheaven.com/define/demand/.
Chicago Manual of Style (CMS):
Demand. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/demand/ (accessed: March 29, 2024).
American Psychological Association (APA):
Demand. PayrollHeaven.com. Retrieved March 29, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/demand/

Definition Sources


Definitions for Demand are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 29th October, 2021 | 0 Views.