Demand (economics)
From Wikipedia, the free encyclopedia
(Redirected from Demand)
"Demand" redirects here. For other uses, see Demand (disambiguation).
 |
Please help improve this article with examples by expanding it. Further information might be found on the talk page. (January 2009) |
 |
This article needs additional citations for verification. Please help improve this article by adding reliable references. Unsourced material may be challenged and removed. (January 2009) |
In economics, demand is the desire to own something and the ability to pay for it.[1] (see also supply and demand). The term demand signifies the ability or the willingness to buy a particular commodity at a given point of time. Demand is also defined elsewhere as a measure of preferences that is weighted by income.
Economists record demand on a demand schedule and plot it on a graph as an inverse (downward sloping) demand curve. The inverse curve reflects the relationship between price and demand: as price decreases, demand increases. The demand curve is equal to the marginal utility (benefit) curve. If there are no externalities, the demand curve is also equal to the social utility (benefit) curve.
[edit] References
- ^ Sullivan, arthur; Steven M. Sheffrin (2003). Economics: Principles in action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. pp. 79. ISBN 0-13-063085-3. http://www.pearsonschool.com/index.cfm?locator=PSZ3R9&PMDbSiteId=2781&PMDbSolutionId=6724&PMDbCategoryId=&PMDbProgramId=12881&level=4.
