What is
Demand is an economic concept that refers to a consumer's desire to buy products and services and willingness to pay a price for them. If all other conditions remain constant, an increase in the price of a good or service will lead to a drop in demand, and vice versa. The total quantity desired by all consumers in a market for a given commodity is known as market demand. The overall demand for all commodities and services in a given economy is known as aggregate demand. Businesses frequently spend a significant amount of money to establish the level of public demand for their products and services. How much of their inventory can they sell at any given price? If demand is underestimated, money is left on the table; if demand is overstated, money is lost. Businesses would not be able to produce anything if demand did not exist.
Step by step
Solved in 2 steps
