Economics: Meaning of Demand

Questions and Answers

Supply levels, consumer preferences, economic stability

Income, advertising, product quality

Desire, marketing strategies, competition levels

Desire, means to purchase, willingness to pay (correct)

Demand is based solely on consumer interests.

Demand is always fixed and does not change.

Demand requires purchasing power alongside desire. (correct)

Demand excludes any consideration of prices.

The promotional strategies employed

The geographical distribution of consumers

The brands available in the market

The time period over which demand is calculated (correct)

The continuous nature of purchases over time Signup and view all the answers

Desire leading to unlimited purchasing Signup and view all the answers

The actual market transactions occurring Signup and view all the answers

Prices of related goods and consumer income Signup and view all the answers

Different prices typically result in different quantities demanded. Signup and view all the answers

Study Notes

Demand is the quantity of a good or service that buyers are willing and able to purchase at different price levels over a specific time frame.
Demand encompasses not only desire but also factors such as purchasing power and willingness to pay.

Effective demand consists of three main elements:
- Desire to purchase a product.
- Financial means to afford it.
- Willingness to spend the financial resources.

Demand is a continuous flow rather than a one-time purchase; it reflects ongoing purchasing behavior.
It is expressed in units over time, e.g., specific quantities per day or week (e.g., one thousand dozens of oranges per day).

Demand represents the various quantities of a good or service that consumers are willing to buy in a given market, influenced by price, income levels, and prices of related goods.