demand

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Demand

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.

demand

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.

demand

or

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 ?
If a worker under a situation of high MD/AC index has the control to modify pace, intensity, load, and rest periods, then such a worker has control to modify exposure and therefore reduce metabolic demands of an activity to restore balance and recover from periods of exertion.
Although walking velocities varied greatly across previous studies, when individuals with TTA walk at similar velocities to nondisabled controls, they typically have 9-33 percent greater metabolic demand [17,23].
Sedation and barbiturate coma: The use of sedation and barbiturates to decrease metabolic demand and, in the case of barbiturates, control intracranial hypertension, is not well-supported by evidence.
Shivering should be avoided, because this may increase metabolic demand and increase oxygen consumption.
The gastrocentric model provides a framework for experimental tests of the hypothesis that sexual segregation is a consequence of the schedule of metabolic demands underlying sexual dimorphism.
Exercise is a potent stimulus that facilitates adaptive vascular responses to meet the metabolic demands of the working muscles.
Our findings appear to support previous studies that showed that arm unsupported stepper exercise produces a higher metabolic demand than arm-supported stepping [14-15].
In preparing for the metabolic demands of the game, it is important to focus on the specific energy system being stressed in the conditioning drills.
Heart failure is a chronic, progressive disease in which the ability of the heart to provide needed cardiac output weakens, thus impeding the heart's ability to pump enough blood to support the body's metabolic demands.
Shtivelman's discovery contributes to our understanding that tumor cells have increased metabolic demands, and could employ a variety of metabolic pathways to support their increased abnormal growth and proliferation.
A robust organism responds rapidly to newly imposed physical and metabolic demands.
Description: Heart failure is the inability of the heart to pump blood at a sufficient rate and volume to meet the metabolic demands of the body.