Unit 2 Microeconomics
Chapter 2 Demand, Supply and Market Equilibrium
Meaning of Demand
Demand refers to the quantity of a commodity that a consumer is ready to buy at different prices. In other words, demand is the desire which is backed by willingness to pay and ability to pay. If a man is willing to pay but he is unable to pay, his desire is not the demand. Thus, to be a demand, both willingness to pay and ability to pay are the conditions.
According to Alfred Marshall," Demand refers to the quantity of a commodity that the the consumers are able and willing to buy at each possible price during a given period of time , other their things being equal."
From the above defination, it is clear that demand for a commodity is also associated with price, place and time .
Difference between Desire & Demand
In common sense, the term desire and demand are used as similar meaning . But ineconomic sense, demand is more than desire. Desire is just a wish to have something whereas demand is the desire backed by willingness to pay and ability to pay. The main difference between demand and desire are as follows:
Chapter 2 Part 1
