Q:

What is the economic meaning of demand?

A:

Quick Answer

In economics, demand is a measure of how much buyers want or need a product. For example, consumers may collectively avoid buying a particular product because they don't understand it or don't believe it has value, resulting in low demand.

Continue Reading
What is the economic meaning of demand?
Credit: Katrina Wittkamp Digital Vision Getty Images

Full Answer

The law of supply and demand influences free market economies because sellers can raise prices on high-demand products. However, factors such as competition and supplies balance out demand by stabilizing prices. When more companies produce the same product or make them widely available, more consumers have access to the product. Competition counteracts high demand and forces sellers to lower prices to retain their customer base. Lack of marketing may also weaken demand simply because the product doesn't have enough visibility.

Learn more about Economics

Related Questions

  • Q:

    Is GDP a good measure of economic well-being?

    A:

    The GDP (gross domestic product) is not considered to be a good measure of economic well-being by many because it only measures the sales and income from economic purchases rather than looking at any moral implications. An example might be an increase in gun sales, which raises the GDP and would be considered positive; however, that raise in gun sales might have been due to sales among the criminally-minded.

    Full Answer >
    Filed Under:
  • Q:

    What is price elasticity?

    A:

    Price elasticity, or price demand, is the measure of how much the demand of a product can respond to a change in its price. Price elasticity is an important concept in the law of supply and demand.

    Full Answer >
    Filed Under:
  • Q:

    What is the relationship of history to economics?

    A:

    Both history and economics involve the study of events and patterns that have occurred over time and affect the present. This can be put together to be referred to as economic history, which helps people understand all patterns related to economics. Therefore, it provides economists a way to analyze patterns and argue based on historical events.

    Full Answer >
    Filed Under:
  • Q:

    What are social sciences that are related to economics?

    A:

    While economics itself is often considered a social science, many of the social sciences, including anthropology, sociology, political science and history, all relate to economics and how the economy plays a role in human behavior throughout different time periods and cultures. Understanding the production and transfer of goods or money within a society is vital to understanding that society as a whole. For this reason, economics is closely linked with all social sciences and the study of human behavior.

    Full Answer >
    Filed Under:

Explore