Definition of Demand

                                                                Definition of Demand

Demand is defined as a quantity of goods or service which a consumer is willing and able to buy at a particular price and at a particular period of time.

There are some certain terms to note in this definition such as;

1.       Quantity of goods or service.

2.       By a consumer.

3.       Willingness and Ability.

4.       A given price and;

5.       A given period of time.

For better understanding of the listed terms above let us have an example of a commodity and service which a consumer demanded (Rice for the goods and Barbing of hair for service); you should know that there is a consumer in existence who is willing and has the ability to pay for that particular quantity of goods or service (Rice or Barbing of hair respectively) at a particular market price i.e. the price tag and a particular period of time.

You should note that a demand is not effective until it is backed by willingness and ability, if there is no ability to pay it is referred to as want.

There is what we refer to as Individual Demand and Market Demand which will be treated in the next article.


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