Demand
noun · Economics
Definition
The quantity of a good that buyers are willing and able to buy at each price.
Explanation
The law of demand says that, other things equal, a higher price reduces quantity demanded.
Example
Demand for umbrellas rises when it rains.
Common confusion
A price change causes movement along the demand curve, not a shift.
Related terms
- SupplyThe quantity of a good that sellers are willing and able to sell at each price.
- EquilibriumThe point where quantity demanded equals quantity supplied.
Study guides that use this term
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