Demand

Demand is an economic term that refers to the quantity of a good or service that consumers are willing and able to purchase at a given price. It is the opposite of supply, which is the amount of a good or service that producers are willing and able to provide. The relationship between demand and supply is known as the law of supply and demand, and it is one of the most fundamental concepts in economics.

History of Demand

The concept of demand has been around since the early days of economics. The first economist to use the term was Adam Smith, who wrote about it in his 1776 book, An Inquiry into the Nature and Causes of the Wealth of Nations. Smith argued that the price of a good or service is determined by the interaction between the supply of the good or service and the demand for it. Since then, the concept of demand has been used by economists to explain how markets work and how prices are determined.

Comparison of Demand and Supply

Summary

Demand is an economic term that refers to the quantity of a good or service that consumers are willing and able to purchase at a given price. It is the opposite of supply, which is the amount of a good or service that producers are willing and able to provide. The relationship between demand and supply is known as the law of supply and demand, and it is one of the most fundamental concepts in economics. For more information about demand, you can visit websites such as Investopedia, The Balance, and Khan Academy.

See Also

• Supply
• Law of Supply and Demand
• Price Elasticity of Demand
• Consumer Surplus
• Producer Surplus
• Marginal Utility
• Opportunity Cost
• Marginal Cost
• Marginal Revenue
• Inflation

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