Concept of Demand
Law of Demand from Basic Economic Principals - A Guide For Students by David E. O'Connor and Christopher Faille Greenwood Press, Westport, CT (2000)	Demand is the amount of a resource, good, or service that people are willing and able to buy at a series of prices in a given time period. It is important to note that this definition requires both a willingness and ability to buy the item. That is, the buyer not onlymust desire the good but also have enough money to make the purchase. Further, economists put a special emphasis on a given time period because it is common for the demand for a resource, good, or service to change over time. The law of demand states that there is an inverse relationship between the price of a good and the quantity demanded of the good. This means that for most goods as the price increases, the quantity demanded decreases. Conversely, as the price of a good decreases, the quantity demanded increases. The elasticity of demand measures the impact of prices on the quantity demanded of a good. The demand for a good is "elastic" when even a relatively small change or difference in price causes a large change in the quantity demanded. The demand for a good is "inelastic" when even a large change or difference in price has a relatively small impact on the quantity demanded.

Concept of Demand

Law of Demand

from Basic Economic Principals - A Guide For Students by David E. O'Connor and Christopher Faille

Greenwood Press, Westport, CT (2000)

Demand is the amount of a resource, good, or service that people are willing and able to buy at a series of prices in a given time period. It is important to note that this definition requires both a willingness and ability to buy the item. That is, the buyer not onlymust desire the good but also have enough money to make the purchase. Further, economists put a special emphasis on a given time period because it is common for the demand for a resource, good, or service to change over time.

The law of demand states that there is an inverse relationship between the price of a good and the quantity demanded of the good. This means that for most goods as the price increases, the quantity demanded decreases. Conversely, as the price of a good decreases, the quantity demanded increases.

The elasticity of demand measures the impact of prices on the quantity demanded of a good. The demand for a good is "elastic" when even a relatively small change or difference in price causes a large change in the quantity demanded. The demand for a good is "inelastic" when even a large change or difference in price has a relatively small impact on the quantity demanded.