Meaning of Demand
In common language, 'demand' and 'desire' are used as synonymous. But in economics, demand implies more than mare desire. The demand for a commodity is its quantity which consumers are able to willing to buy at various prices during a given period of time. A beggar's desires to travel by air from Dang to Kathmandu has no significance as he cannot pay for it. On the other hand, a businessman's desire to go to Kathmandu by an aeroplane is demand as he is able to pay for it, and willing to do so. Thus, demand means desire backed by willingness and ability to pay.
Both willingness and ability to pay are essentile for demand. If a man is willing to pay but he is unable to pay, his desire will not become demand. In the same way, if he is able to pay but is not willing to pay, his desire will not the same way, if he is able to pay but is not willing to pay, his desire will not be charged into demand. In order to change desire into demand, it is necessary that he should have both willingness and ability to pay for it. Thus, demand refers to effective desire which implies three things:
Different economists have defined the term demand in different ways. Some are as follows:
According to Prof. Marshall,"Demand refer to the quantities of a commodity that the consumers are able and willing to buy at each possible price during a given period of time, other things being equal."
In the words of Bober,"By the demand we mean the various quantities of a given commodity or services which consumer's would buy in one market in a given period of time at various prices."
In simple words, demand means the quantity of goods and services which consumers would buy in a market at given price and time.
Thus, there are necessary for demand to exist:
- Desire for a commodity;
- Willingness to pay for it; and
- Ability to pay for it.
Different economists have defined the term demand in different ways. Some are as follows:
According to Prof. Marshall,"Demand refer to the quantities of a commodity that the consumers are able and willing to buy at each possible price during a given period of time, other things being equal."
In the words of Bober,"By the demand we mean the various quantities of a given commodity or services which consumer's would buy in one market in a given period of time at various prices."
In simple words, demand means the quantity of goods and services which consumers would buy in a market at given price and time.
Thus, there are necessary for demand to exist:
- the price of the commodity;
- the amount of a commodity; and
- per unit of time.
