give meaning of demand more than ten lines
Answers
Demand in economics is the consumer's desire and ability to purchase a good or service. It's the underlying force that drives economic growth and expansion. Without demand, no business would ever bother producing anything.
Determinants of Demand
There are five determinants of demand. The most important is the price of the good or service itself. The second is the price of related products, whether they are substitutes or complementary.
Circumstances drive the next three determinants. These are consumers' incomes, their tastes, and their expectations.
Law of Demand
The law of demand governs the relationship between the quantity demanded and the price. This economic principle describes something you already intuitively know. If the price increases, people buy less. The reverse is also true. If the price drops, people buy more.
But, price is not the only determining factor. The law of demand is only true if all other determinants don't change.
In economics, this is called ceteris paribus. The law of demand formally states that, ceteris paribus, the quantity demanded for a good or service is inversely related to the price.
Demand Schedule
The demand schedule is a table or formula that tells you how many units of a good or service will be demanded at the various prices, ceteris paribus.