Demand_Economics

Demand Economics In economics, we need to use terms a little more carefully than they are sometimes used in ordinary discussions. In general, "Demand" is a word that can have more than one meaning, but in microeconomics we define it more carefully so that it has only one meaning. Demand is the relationship between price and quantity demanded for a particular good and service in particular circumstances. For each price the demand relationship tells the quantity the buyers want to buy at that corresponding price. The quantity the buyers want to buy at a particular price is called the Quantity Demanded. The reason demand is defined in such a way is to keep it simple, we may think of the buyers as consumers. Clearly, the buyers are the people who want or need the product or service -- but there is more to it than that. The word "demand" refers to the willingness and ability of people to purchase the good or service in the market. The demand relationship expresses that willingness and ability for the whole range of prices. To say that a person has a demand for a particular product is to say that the person has money with which to buy demand, economics, quantity, price, supply, demanded, good, prices, supplied, relationship, people, particular, luxury, goods, equilibrium, beer, service, law, increase, need, curve, things, higher, buyers, while, think, seen, power, one, market, excess, example, estimated, diagram, changes, change