Demand, in economics, refers to the consumer's desire and ability to purchase goods or services. It's not just about wanting something; it's about being willing and able to pay for it at a certain price.

Key aspects of demand include:

• Desire: A consumer must want the good or service.
• Ability to Pay: The consumer must have the financial resources to purchase the good or service.
• Willingness to Pay: The consumer must be willing to spend their money on the good or service at a specific price.

Demand is often illustrated graphically with a demand curve, which shows the relationship between the price of a good or service and the quantity demanded over a period of time. Generally, as the price increases, the quantity demanded decreases, and vice versa.

Many factors can influence demand, including:

• Price of the good or service
• Consumer income
• Prices of related goods or services (substitutes and complements)
• Consumer tastes and preferences
• Expectations about future prices and availability
• Population size and demographics

Understanding demand is crucial for businesses and policymakers because it helps them make informed decisions about pricing, production, and resource allocation. For example, a business might use demand analysis to determine the optimal price point for a product to maximize profits.

More information is available at:

• Investopedia: https://www.investopedia.com/terms/d/demand.asp
• Corporate Finance Institute: https://corporatefinanceinstitute.com/resources/economics/demand/