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<h2>Introducing the Theory of Demand</h2>
<p>As human beings, we satisfy our wants by purchasing and consuming goods and services. In ordinary terms, demand simply means a desire, a wish or a want. In economics, demand goes beyond the expression of mere desire, wish or want. It is the desire, wish, or want backed by the ability to pay. If what you desire, wish or want is backed by the ability to pay, it is called effective demand.</p>
<h2>Meaning of Demand</h2>
<p>Demand can be defined as the ability and willingness of a consumer to buy a specific quantity of goods or services at a given price within a specific period of time when all other demand factors remain unchanged. In economics, demand is quite different from wants or needs. Wants or needs refer to a mere desire for a commodity but not backed up by the willingness and ability to pay for it.</p>
<h2>The Law of Demand</h2>
<p>The way consumers react to a change in the price of a commodity is so typical that economists state it as a rule or law. This law states that all things being equal, the higher the price, the lower the quantity of goods that will be demanded and vice-versa. This means that the quantity demanded of a good or service is inversely related to its price. This law is often regarded as the first law of demand and supply.</p>
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The Meaning and Law of Demand

Economics studies social behavior guiding the allocation of scarce resources to meet the unlimited needs and desires of the individual members of a given society, and for the production of goods and services, growth of production and welfare over time, and a great variety of other complex issues of vital concern to society. 

Economics

Discover the principles behind the behavior of consumers and the factors that affect demand, including determinants of demand, types of demand, elasticity of demand, and its measurement, as well as how to apply price elasticity of demand in real-life situations.


The Meaning and Law of Demand

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