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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 ?
The market-clearing price becomes the uniform per-unit price charged to demanders.
When the monopoly output exceeds the public output, there is a possibility of a coalition of low and high demanders in support of the monopoly proposal: Low demanders whose consumer surplus is negative under public provision prefer non-participation in the public goods market under monopoly, and higher demand individuals may gain consumer surplus from a larger monopoly output.
Netanyahu disposait pour ce faire d'un delai de 28 jours, dont il peut demander la prolongation de deux semaines.
On commence par demander un cliche radiographique du thorax suivit une heure apres par un autre cliche .
La juge chargee de cette affaire a decide de depecher une commission rogatoire "expresse" aux autorites competentes pour demander la comparution du mis en cause devant le tribunal afin qu'il reponde de ses crimes, a precise la meme source.
The ring office then produces an invoice to the demander on the suppliers behalf, and the supplier and demander are each charged a 2% commission for the service.
The reality is that voluntary, not-for-profit, Welsh housing association already have the financial freedom to meet the needs of Welsh housing, but the cuts in their funding from the Welsh Assembly Government as demander for housing has increased, have shackled their ability to meet the needs of young people and lower income households, on their growing waiting lists.
The supply curve faced by one demander acting independently would be much more elastic than market supply.
In the model of section III, PROs set the price of the entire blanket, which provides the demander with unlimited play of the PRO's catalog.
As a result, a demander can slip from the high priced market to the low priced market by incurring information and transportation costs, when the consumer surplus gain exceeds the movement or slippage cost.
An individual nonprofit demander analyzes the costs and benefits of acting as a nonprofit controller; if she assumes that other nonprofit demanders will not change their behavior as a result of her action, then she will conclude that the action's benefits will be distributed among all demanders.
The On Demander group was defined as streaming content more than 4 hours each week and spending more time streaming video than watching live television.