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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


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.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson



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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
White (2003) stresses the possibility of a hybrid instrument between a pure debt and a pure safekeeping transaction, calling it "demandable debt." This in-between category of demandable debt seems to apply well to the Chettiar case.
Specifically, the incentive to run stems from the combination of demandable liabilities and illiquid assets, as in Diamond and Philip Dybvig (1983), not simply from the cliff effect due to a fixed $1.00 NAV.
Judicial power includes the duty of the courts of justice to settle actual controversies involving rights which are legally demandable and enforceable, and to determine whether or not there has been a grave abuse of discretion amounting to lack or excess of jurisdiction on the part of any branch or instrumentality of the Government."
Now the statement must also include the debits for capital and profits, as well as the securities, which must face up to these interior obligations of the Bank, and due to their nature, not demandable".
Such complaints were non-controversial; the call loan market--the market for loans "demandable on call" and collateralized by stock equity--was unable to maintain liquidity in both the securities markets and the payment system especially during the most severe crises.
Assuming that state banks maintained a reserve ratio of .20 against their combined demandable liabilities (as they did in fact do just before the war), these reserves would have allowed them to support $1.045 billion in outst anding notes and deposits.
They are demandable debt that participates in the economy's payments system.
Consumers, however, are quickly learning that rather than just buying a new computer, they can improve their machine's performance by upgrading their PCs at incredibly low RAM prices, which have become highly demandable as consumers have moved on to Windows 95.
Would not the post-efforts demandable of John go up?