Definition
- Demand
- Demand is the amount of a good or service consumers are willing and able to purchase at each price.
- Not to be confused with: Quantity demanded
- Quantity demanded is the amount bought at one particular price, a single point on the demand curve.
Example
Can you think of an example of demand?
At £4 a cup a coffee shop sells 60 cups a day; at £3 it sells 90; at £2 it sells 140. Those three pairs are three points on one demand curve. The demand is the whole list, and each single figure is a quantity demanded.
Test yourself
What is the difference between demand and quantity demanded?
Demand is the whole schedule at every price; quantity demanded is one point on it, at one price.