Demand
Demand is the quantity of a good or service that consumers are willing and able to buy at different prices.
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Demand is the quantity of a good or service that consumers are willing and able to buy at different prices.
- Demand curves slope downwards
- Lower prices raise quantity demanded
- Income and tastes shift demand
🧠 Quick quiz
Three questions. Score 2 or more to complete the topic.
What is Demand?
Within Economics & Civics, which covers money, markets, business, government, law and citizenship: how societies are organised and run, this topic explains Demand. Economics and civics topics explain how money, markets, laws and government affect people, so each topic here pairs a clear definition with a model.
Check that you can explain Demand in your own words and give one example from everyday life. If you can do that, you have understood the core idea.
Understanding Demand helps you read the news critically and weigh up policies, choices and arguments about society.
Demand in detail
Demand is the quantity of a good or service that consumers are willing and able to buy at a given price in a given time. The law of demand says that as price rises, quantity demanded falls, and as price falls, quantity demanded rises, shown by a downward-sloping demand curve.
A change in price causes a movement along the curve, while other factors shift the whole curve: income, tastes and fashion, prices of related goods (substitutes and complements), population and advertising. A rise in demand shifts the curve right. Businesses use demand information to set prices and plan production.
How the interactive helps you understand Demand
Watch the supply model in the interactive. Use any sliders or buttons it offers to change the values and see how the supply model responds.
Before you change anything, predict the result. Then change one value at a time and check whether your prediction was right. This is a quick way to build a correct mental model of Demand.
Real-life uses and examples
- Give a balanced answer about Demand by considering more than one point of view.
- Relate Demand to a news story about prices, jobs, elections or government spending.
- Use Demand to weigh up the pros and costs of a policy or decision.
Common mistakes to avoid
- Confusing a short-term effect with a long-term one.
- Giving an opinion without evidence or a clear economic or civic reason.
- Learning the definition without testing it. Use the quiz and the interactive to check that you can apply the idea.
Frequently asked questions about Demand
What is Demand?
Demand is the quantity of a good or service that consumers are willing and able to buy at different prices.
What are the most important points about Demand?
The main points are: Demand curves slope downwards; Lower prices raise quantity demanded; Income and tastes shift demand.
Why is Demand useful?
Understanding Demand helps you read the news critically and weigh up policies, choices and arguments about society.
How can I practise Demand?
Open the interactive at the top of this page and change the controls one at a time. Predict the result before each change, then take the three-question quiz. A score of two or more marks the topic as complete on this device.
Which topics are related to Demand?
Related topics in Economics & Civics include Price Elasticity, Money and Its Functions, Budgeting.