DEMAND
Economists study demand in order to understand consumer behavior and the determination of price levels, In the absence of government intervention, prices are determined by the forces of demand and supply. Buyers and sellers are brought into contact with one another in a market. A market does not have to be an actual location. For example, part of the book market now exists on the Internet.
DEFINITION:-
In economics demand is not the same thing as desire, or need, or want. This is because the strength of the desire for something will not, in itself, have any influence on the price of the item. Only when desire is supported by the ability and willingness to pay the price does it become an effective demand and have an influence on the market. Demand, in economics, means effective demand and may be defined as ‘the quantity of the commodity which will be demanded at any given price over some given period of time.’
INDIVIDUAL AND MARKET DEMAND:-
For the great majority of goods and services, experience shows that the quantity demanded will increase as the price falls. Economists have found this out by studying markets. It is possible to study individual demand which is the relationship between the quantities demanded of a good or service by a single individual and the price of that good or service. It is also possible to study market demand. This is the total demand for the good or service. It is found by adding the quantities demanded by each individual buyer at each price. For example one person’s demand for crisps at the current price may be four a week and the total demand may be 30000.
Market demand will depend on how the market is defined. For example, the total demand for all brands of crisps may be studied, or the total ...