Demand in economics is defined as the quantities of a commodity that consumers are willing and able to purchase at various prices during a given period of time when other factors are constant. Individual demand is the demand for a commodity by one single consumer while market demand is the demand for a commodity by all consumers in the market. Market demand and market supply will determine the price for a commodity.
The law of demand states that the quantity demanded will increase as the price falls and decrease as the price rises when all other factors remain constant. Generally, a demand curve slopes downward from left to right. This implies that more of a commodity or service is demanded at a lower price.
Change in demand and change in quantity demanded
1. The quantity demanded is defined as the quantity of a commodity consumers are willing and able to buy at one particular price. A change in quantity demanded of a commodity can occur only when its price changes. The quantity demanded increases as the price falls and vice versa.
2. A change in demand is the change of quantities of a commodity that consumers are willing and able to purchase at different prices during a given period of time when other factors are constant.
Types of demand