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The need or desire for a good, service, or asset among consumers at a given price. The amount of demand at a given price is determined by supply and the availability of similar or replacements goods and services, among other factors. While demand for some staple products is relatively constant regardless of price, most of the time the price has a large influence on the level of demand. Demand for a good or service tends to increase as its price decreases. See also: Law of supply and demand, Demand curve.


the amount of a product which is purchased at a particular price at a particular point in time. A demand curve is a line showing the relationship between the price of a product and the quantity demanded per time period over a range of possible prices. Demand curves are usually downward sloping, indicating that as the price of the product falls, more is demanded. The extent to which the demand for a product will increase as price falls (and the extent to which demand will drop if the price rises) depends on the product's price-ELASTICITY OF DEMAND. The demand for a product, however, is determined also by a variety of non-price factors. A demand function attempts to incorporate all the factors that have a statistically. significant influence on demand for example, consumers' incomes, the prices of substitute products, advertising, etc. Demand curves will shift if any of these factors change over time.

In practice, firms are unable to derive definitive demand curves because of incomplete information. For this reason many firms use a COST-BASED PRICING formula for determining prices, but allow for the influence of demand by varying the profit mark-up (see DEMAND-BASED PRICING, COMPETITION-BASED PRICING).

There are various methods a firm can use to ‘forecast’ demand, including time series analysis, barometric indicators and econometric models. See SALES FORECASTING.



effective demand

the WANT, need or desire for a product backed by the money to purchase it. In economic analysis, demand is always based on ‘willingness and ability to pay’ for a product, not merely want or need for the product. CONSUMERS’ total demand for a product is reflected in the DEMAND CURVE. Compare SUPPLY.
References in periodicals archive ?
Biological Oxygen Demand is an important parameter for determining the extent of pollution in a stream.
Moore, plant manager of Reynolds sheet facilities in Alabama, the system meets all state and federal permit standards for biological oxygen demand and total suspended solids.
provides a unique instrumental approach for the measurement of biological oxygen demand (BOD), chemical oxygen demand (COD), total organic carbon (TOC) and total suspended solids (TSS).
Ecosystem Plus has the ability to, one, significantly reduce the biological oxygen demand (BOD) and chemical oxygen demand (COD) found in raw sewage and waste water; two, reduce and eliminate odors such as hydrogen sulfide and ammonia; three, substantially reduce grease, fats, oils, and total suspended solids; and four, provide easier extraction of heavy metals such as lead, copper, chromium, and zinc from contaminated water," said Neozyme's President, John W.
7 million capital plan will improve the biological oxygen demand loading and wet weather efficiency of the treatment plant.
Bacto-Zyme has demonstrated the capacity to: 1) reduce and eliminate odors such as hydrogen sulfide and ammonia; 2) reduce and eliminate grease, fats, oils and total suspended solids and biological oxygen demand from raw sewage and waste water; and, 3) "leach" heavy metals such as copper, chromium and zinc from contaminated water.
The PASTEL UV uses this UV signature of the pollutants or specific components in a sample to determine the biological oxygen demand (BOD), chemical oxygen demand (COD), total organic carbon (TOC), total suspended solids (TSS), and nitrates and anionic surfactants.
Chevron E36 is readily biodegradable and has the lowest biological oxygen demand of any liquid on the market.

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