Meaning of Demand
According to Fredric Benham, "The demand for anything, at a given price is the amount of it which will be bought per unit of time at that price."
In the words of Pappas and Brigham, "The term demand is defined as the number of units of particular goods or service that consumers are willing to purchase during a specific period and under a given set of conditions."
According to Milton H. Spencer, "Demand is the quantity that will be purchased of particular commodity at various prices, at a given time and place."
Derivation of Individual and Market Demand Curve
Derivation of Individual Demand Curve
|Price (Rs. Per kg)||Quantity Demanded (kg per month)|
- Traditionally, the price level is shown along the vertical axis and the quantity demanded is shown along the horizontal axis.
- The demand curve may show the demand of an individual or the group of consumers in the market.
- The demand curve assumes that there is no change in the value of other relevant variables. This means that the prices of other goods, income of the consumers and taste of consumers are assumed to be constant.
- In general, the demand curve has negative slope, or the demand curve slopes downwards. This means that people demand more at lower prices.