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 classic literature ?
Munro witnessed this movement with manifest uneasiness; nor did he fail to demand an instant explanation.
"What says the Frenchman?" demanded the veteran, sternly; "does he make a merit of having captured a scout, with a note from headquarters?
Why, if there is anything in supply and demand, life is the cheapest thing in the world.
It ought to be recollected that if less will be required from the States, they will have proportionably less means to answer the demand. If the opinions of those who contend for the distinction which has been mentioned were to be received as evidence of truth, one would be led to conclude that there was some known point in the economy of national affairs at which it would be safe to stop and to say: Thus far the ends of public happiness will be promoted by supplying the wants of government, and all beyond this is unworthy of our care or anxiety.
That remark may be very true, but I don't care anything about the demand; I want to know French for its own sake.
A survey on the inventory-routing problem with stochastic lead times and demands, J.
ISLAMABAD -- Rejecting all cut motions, the National Assembly approved all 147 demands of grant amounting to Rs 3,127,036,989,000 for various divisions for the fiscal year 2016-17.
In summary, supply-neutral and unconstrained demands are at times different; especially when (unbeknownst to them) supply chain managers routinely shape and create demand.
BAGHDAD / NINA / The MP, of the Kurdistan Alliance, Mahmoud Othman said that the forming multiple committees by the government to meet the demands of the demonstrators is incorrect step.
Even more promising for many traders is the fact that Chinas move to boost its domestic production comes at a time when it is not be able to meet its demands. Jones estimates that Chinas domestic capacity will increase by around 6 million metric tons by the end of this decade, accounting for nearly 70 percent of worldwide stainless steel growth.