Demand

Demand for a good or service is the quantity that purchasers are willing and able to buy at a given price level in a given period of time.

The basic law of demand is that demand varies inversely with price. Lower prices make products more affordable for consumers.

Factors affecting Demand

All of the following factors will cause a shift in demand.

Demand for a factor of production which derives not from the good itself, but for the good it produces.

Demand for goods which are interdependent, such that they are demanded together. Complementary goods.

Demand for a good that has multiple uses.

Demand for goods that are in competition with eachother. Rival goods.