Demand is basically spending money but being willing to spend it which is extremely tough lately because of the economy. I read:
“Elements of the Law of Demand As Melvin and Boyes note the law of demand is defined as:
- The quantity of a well-defined good or service that:
- People are willing and able to buy.
- During a particular period of time.
- Decreases/increases as the price of that good or service rises/falls
- All other factors remain constant.”
Demand is confusing for most people and for me before doing some research, i was also confused on exactly what is it, it’s not just how many boxes of cereal you buy or 20 shares of apple, it is basically all possible prices ever for that particular thing.
A big part of Economic demand is the demand curve. Ive learned that the demand curve is the time period of which the products prices are flucuated. Also the law of demand is a big part of it as well, “The most famous law in economics, and the one economists are most sure of, is the law of demand. On this law is built almost the whole edifice of economics. The law of demand states that when the price of a good rises, the amount demanded falls, and when the price falls, the amount demanded rises.”
I think gas prices are the best way to describe the process of demand because no matter if the prices goes up or down we still need gas so we are going to pay for it. However, we will most likely cut back, maybe not drive as much or think about where we need to go and only go to those places in order to not spend as much on gas. Although people cut down, they dont cut it out of their lives. Thats how people still make money on their products even when the prices go up but thats also why peoples buisnesses can fail. Restaurants probably take a huge hit because when the economy is bad people cut back on eating out and start to make thier own food because its cheaper, so some things fail and some things just stay the same.