Q:

What is the economic meaning of demand?

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Quick Answer

In economics, demand is a measure of how much buyers want or need a product. For example, consumers may collectively avoid buying a particular product because they don't understand it or don't believe it has value, resulting in low demand.

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What is the economic meaning of demand?
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Full Answer

The law of supply and demand influences free market economies because sellers can raise prices on high-demand products. However, factors such as competition and supplies balance out demand by stabilizing prices. When more companies produce the same product or make them widely available, more consumers have access to the product. Competition counteracts high demand and forces sellers to lower prices to retain their customer base. Lack of marketing may also weaken demand simply because the product doesn't have enough visibility.

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    What is price elasticity?

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