There is a clear distinction between demand and quantity demanded; furthermore, they have their own significance in the economics arena. In economics, the term demand refers to the will associated with purchasing a product, which one can afford, meaning that the price must be contained within the fiscal reach of the consumer. Demand is also a combination of aspiration to possess something, capability to pay for it and the willingness to reimburse. An example is the ability of citizens to pay for education, as well as to buy basic-food staff. Quantity demanded (QD), on the other hand, refers to the entire number of commodities demanded at any one moment, for instance, people buying 3000 laptops when the price is $ 500 (Baumol and Blinder, 2008). QD depends on the worth of products, not considering market stability.
Substitutes and Complement Products
Substitutes are products that can replace each other and still gratify the desires that the intended product aimed at addressing (McKenzie and Dwight, 2006). A notable example is butter and margarine, which meet the same purpose of the consumers. It is notable that changes in price of one product will have a significant demand on the other. Complement products refer to a set of goods that are consumed jointly. A sole example is the printer and ink cartridges, which must be used together. Other examples include camera and film, together with computer and Microsoft programs. Amplification in price for one product will cause a decrease in demand of its complement.
The Difference between Demand and Quantity Demanded
Understanding the difference between the two aspects is critical in avoiding errors in economics. Demand is used to verify the marketplac...
... middle of paper ...
...ed of another related product. Elasticity of demand is another fundamental aspect in demand since a proportionate change in one factor affects the demand of a product. There is price and income as well as cross elasticity of demand, in economics. Several factors do affect the demand of a product, and these include weather, price expectations, and the consumer count in the marketplace.
Baumol, William and Blinder A. (2008) Macroeconomics: Principles and Policy. 11th edition. Florence, Cengage Learning.
McKenzie, Richard and Dwight R. (2006) In defense of monopoly: how market power fosters creative production. Michigan, University of Michigan Press
Myers, D. (2004) Construction economics: a new approach. Oxford, Taylor and Francis
Gwartney, James et al. (2008) Economics: Private and Public Choice. Florence, Cengage Learning.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Supply and demand Economics is a subdivision of social science that deals with the factors that determine the production, dispensation, and utilization of goods and services. According to what I have learned during high school, Economics is a study about different issues regarding on people 's wants and needs. It also deals about taxation, supply and demand, management and anything related in business. It is also a study about how we live and how we produce and consume different things in our everyday lives.... [tags: Supply and demand, Economics]
755 words (2.2 pages)
- Supply and Demand, in economics is the relationship between the amounts of a Product that the producers are selling at a various prices and the amounts of the consumers desire to buy. There is a law in the Supply and Demand which explaining the interaction between the supply of the product or resources and the demand of it to the consumers. Both of it is connected to each other. The Law of Supply and Demand pull against each other that cause to it to increase or decrease in some various ways. There are so many factors that can affect both supply and demand.... [tags: Supply and demand, Marketing, Consumer theory]
744 words (2.1 pages)
- Executive Summary In this report, I will be distinguishing Demand and Quantity Demanded by stating the differences between both terminologies. By referring to the textbook which we are using throughout our course plus resources from the internet, I have been able to collect some information about the definitions of demand and quantity demanded. The factors which affect the movement along the curve and shifting of the curve have been stated in the following pages in this report. Demand and Quantity Demanded are different in terminologies and also literally.... [tags: Demand Quantity Price Economics Theory Research]
1410 words (4 pages)
- The Law of Demand states that “there is an inverse relationship between the price of a good and demand. As prices fall, we see an expansion of demand. If price rises, there will be a contraction of demand (Riley, 2016).” In the world of economics ‘demand’ refers to one’s willingness and ability to acquire goods or services. This means that one desires something enough that they are willing to procure it, therefore, creating a sense of demand. However, simply desiring a good or service is not the sole meaning behind demand.... [tags: Supply and demand, Economics, Cost]
1085 words (3.1 pages)
- 1. Explain why a change in one component of aggregate demand will cause the aggregate demand curve to shift by a multiple of the initial change. There are four components of the aggregate demand, and any one of these four components might influence the aggregate demand in a very profound way. Let’s take a look at a fictitious situation where the government decides to build some infrastructure, to finance the project the government will have to increase the spending. The area where the infrastructure will be built, sees influx of builders, who will collect salaries, and will have spendable income.... [tags: Supply and demand, Economics, Macroeconomics]
810 words (2.3 pages)
- Supply and demand is a tool used in Economics to describe, and show, how an economy functions. Supply and demand is used to show how prices are determined. Demand exists when an individual or group desires a good or service to the point where they are willing to pay or trade for it. The amount of a good or service purchased at a certain price is known as the quantity demanded. (Pg. 74) When the price of a good increases, consumers tend to respond by purchasing less of the good or something else, such as a substitute to that specific good.... [tags: Supply and demand, Demand curve]
2363 words (6.8 pages)
- Supply and demand, one of the most basic principles in economics. We have learned about it during our study of macro economics. Our studies included terminology such as supply and demand curves, shifts, movement, and market equilibrium. Furthermore, we learned concepts like how an increase in demand effects a market, or how external forces can effect demand. “Oil Prices: What’s Behind the Drop. Simple Economics”by Clifford Krauss is an article that aims to explain current oil prices using supply and demand.... [tags: Supply and demand, Economics]
718 words (2.1 pages)
- ECO/365 Supply and Demand Simulation The supply and demand simulation included both microeconomics and macroeconomics concepts. The simulation focused on a property management firm, GoodLife Management, and its ability to adjust the levels of supply and demand of two-bedroom apartments in the Atlantis community. GoodLife Management was challenged with changes in population, tastes, income, and a price ceiling. As a result of these factors the firm had to strategize about shifts in the changes in supply and demand and determine the equilibrium price and quantity.... [tags: Supply and demand, Microeconomics, Economics]
1044 words (3 pages)
- Henry Hazlitt’s book, Economics in one lesson, brings to perspective numerous topics that are mainstream issues in the economy today. His book breaks down in detail specific concepts that have their effects on the economy. Hazlitt explains topics such as war and the expenses, the tariff system, and productivity and the minimum wage laws. One concept Hazlitt emphasized on was how economics was viewed for temporary needs, versus more permanently viewed. “In addition to theses endless pleading of self-interest, there is a second main factor that spawns new economic fallacies every day.... [tags: Economics in One Lesson Henry Hazlitt]
1976 words (5.6 pages)
- Supply and Demand Every organisation which provides goods or services to fee paying customers must, by its very nature, charge price for that good or service, to pay for its costs, have retained profits for investments and to keep its shareholders happy. In theory, the market price of any good or service is determined by the interaction of forces of demand and supply. There is an old saying, that ?if you can teach a parrot to say ?demand. and ?supply. you have created a trained economist.?1 There is some truth to this saying as most problems in the economics can be examined by applying the rules of demand and supply.... [tags: Economy Economics Supply Demand Essays]
2214 words (6.3 pages)