Quantity Demanded
Quantity demanded is an economic term that refers to the amount of a good or service that consumers are willing and able to purchase at a given price. It is one of the most important concepts in economics and is used to determine the demand for a product or service. Quantity demanded is determined by the price of the good or service, the income of the consumer, the prices of related goods and services, and the consumer’s tastes and preferences.
History of Quantity Demanded
The concept of quantity demanded has been around since the early days of economics. It was first introduced by Adam Smith in his book The Wealth of Nations, which was published in 1776. Smith argued that the demand for a good or service is determined by its price and the income of the consumer. Since then, economists have developed more sophisticated models to explain the demand for goods and services.
In the 19th century, Alfred Marshall developed the concept of elasticity of demand, which measures how responsive the quantity demanded is to changes in price. In the 20th century, economists such as John Maynard Keynes and Milton Friedman developed theories of consumer behavior that further refined the concept of quantity demanded.
Table of Comparisons
| Price | Quantity Demanded |
|---|---|
| $10 | 100 |
| $20 | 80 |
| $30 | 60 |
| $40 | 40 |
Summary
Quantity demanded is an important concept in economics that refers to the amount of a good or service that consumers are willing and able to purchase at a given price. It is determined by the price of the good or service, the income of the consumer, the prices of related goods and services, and the consumer’s tastes and preferences. To learn more about quantity demanded, visit websites such as Investopedia, The Balance, and Khan Academy.
See Also
- Demand
- Supply
- Elasticity of Demand
- Consumer Behavior
- Price Elasticity of Demand
- Income Elasticity of Demand
- Cross Elasticity of Demand
- Price Floor
- Price Ceiling
- Equilibrium Price
