Concept of demand
The initial step to learn Economics is to know the concept of demand. So demand refers to the willingness of individuals to buy some goods and services. hence the willingness and ability to purchase some goods make the demand effective.
Demand is the amount of goods that people want to buy at a given price. Prices go up when supply is less, and demand is high. it refers to the law of demand whereas price increases, demand decreases, and vice versa showing an indirect relationship between quantity demanded and price. This is known as the law of demand which assumes that the consumer will want more and more. Demand forecasting tries to predict how demand will change in the future.
Kinds of demand:- there is various kind of demand. some of them are given here -
Price demand:-It is a demand for different quantities of goods or services that consumers want to purchase at a given price and time period and consider other factors, such as prices of the related goods, level of income of consumers, and consumer preferences, remain constant.
Income demand:- It is a demand for different quantities of goods or services that consumers want to purchase at different levels of income assuming other factors remain constant.
Cross demand:-It refers to the demand for different quantities of goods or services whose demand depends not only on its own price but also on the price of other related goods or services.
Individual demand:- This classification is based on the number of consumers in the market. In dividual demand refers to the number of goods or services demanded by an individual consumer at a given price at a given time period.
Market demand:-It is the aggregate of individual demands of all the consumers for goods over a period of time at a specific price while other factors are constant.
Determinant of demand:-
Price of product (The higher the market price the more a farmer will supply.)
Substitute goods(The price of goods that are related to a specific good.)
The cost of production inputs (Higher input costs mean higher production costs and vise visa.)
Taste or preference of consumers (Example if skinny jeans become fashionable, the demand increase.)
Consumer expectations (Most often, this refers to whether a consumer believes prices for the product will rise or fall in the future.)