Understanding Consumer Demand

Demand refers to a consumer's desire to purchase goods and services at various prices during a specific time period.

Consumer choices form the basis of demand, as they determine the number of goods that customers are willing and ready to purchase.

Factors that influence demand include the price of the commodity, price of other goods, consumer's income, and consumer's preferences and tastes.

<p>The cost of a commodity influences the quantity of the commodity that customers are willing to buy. Higher prices usually lead to lower demand, while lower prices may increase demand.</p> Signup and view all the answers

<p>Demand refers to the overall desire of consumers to purchase a product, while quantity demanded represents the actual quantity of a product that consumers are willing and able to buy at a specific price.</p> Signup and view all the answers