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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 ?
This study considers the running and the metabolic demands of professional rugby union games.
It was previously unknown how lower-limb amputation affected the metabolic demand of walking in young, active individuals with TTA across a range of walking velocities.
Propofol anaesthesia is being utilised in adults to reduce the metabolic demand for oxygen, with the added benefit of improving the seizure threshold.
Hypothermia: Cooling the brain reduces damage by decreasing metabolic demand, decreasing inflammation and reducing the release of glutamate and free radicals that compound ischaemic damage.
Both scenarios can result in increased ICP due to increased cerebral metabolic demand, increased cerebral blood flow, and vasocongestion.
rufescens: Jaeckle and Manahan, 1989a), in which metabolic demand exceeded energy available from depletion of protein and lipid over development.
The combined response for domestic ruminants is to select diets that meet the metabolic demand for nutrients, that is, to avoid accumulations of excess metabolites within the digestive tract or in circulation (Illius and Jessop 1996).
Metabolic demand and strain of Paralympic sit-skiing is different to able-bodied skiing.
The purpose of this study was to quantify the changes in metabolic demand as a result of performing three different user-machine interactions on a CT at a constant machine work output.
These results suggest an uncoupling between myocardial metabolic demand and supply in diabetic cardiac autonomic neuropathy patients when subjected to sympathetic stimulation/stress.
Results from this study showed that metabolic demand for servicemembers with amputations was 8.
He added that discovering the genetic and molecular basis for this protection, and for the mechanisms that underlie the reduction in metabolic demand could help experts apply them in a wide range of disciplines.