Economists have a very precise definition of demand. For them, demand is the relationship between the quantity of a good or service to consumers to purchase and the price charged for that good. More precisely and formally, the Glossary of Economics defines demand as "the desire to possess a good or service with Necessary goods, services or financial instruments necessary to make a legal transaction of the goods or services."
What the demand It is not:
The demand It is not a number of consumers who want to buy, be it 5 oranges or 17 Microsoft shares, since the demand represents the relationship between the desired quantity of a good and all possible prices for that good. The specific quantity desired for a good at a certain price is known as the quantity demanded. Usually a time period is also given when describing the quantity demanded.
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In this article you will find:
Demand - Examples of the quantity demanded:
I will give you the typical example of the demand:
When the price of an orange is 65, the quantity demanded is 300 oranges a week, if the price rises to 70, the quantity demanded would probably fall to less than 300 oranges.
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If the Starbucks store reduces its price for a tall coffee from $ 1.75 to $ 1.65, the quantity demanded will rise from 45 one-hour coffees to 48 one-hour coffees.
Now the demand curve:
A demand curve is a table that lists the possible prices of a good and service, and the number of associates required. The demand curve for oranges could be (in part) as follows:
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$ 75 - 270 oranges a week
$ 70 - 300 oranges a week
$ 65 - 320 oranges a week
$ 60 - 400 oranges a week
For this kind of demand analysis there are tools such as econometrics to predict the behavior of the system.
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This demand curve would have a shape similar to:
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