Question

Explain the essential element of demand?

Answer 1

Answer:

Demand is the number of goods that the customers are ready and able to buy at several prices during a given time frame. The association between price and quantity demanded is also called a Demand curve. Preferences and choices, which are the basics of demand, can be depicted as the functions of cost, odds, benefit and other variables.

The amount of a good that the customer picks up modestly, relies on the cost of the commodity, the cost of other commodities, the customer’s earnings and his or her tastes and proclivity. The amount of a commodity that a customer is ready to purchase and is able to manage and afford, provided prices of goods and customer’s tastes and preferences are known as demand for the commodity.

In our daily life, we often see that a consumer’s preferences for product change according to their preferences, income, and the prices of the goods or prices of other goods.

Here, the demand of a product can be defined as the quantity of a product that a consumer is eager to purchase, can afford at a given price, and is according to his/her preferences and taste. Whenever there is a change in any of those variables than the demand and supply of a product starts changing