04-25-2015, 09:57 AM
[ltr]Concept of Demand[/ltr]
[ltr]All societies necessarily make economic choices. Society needs to make choices about, what should be produced, how should those goods and services be produced, and whom is allowed to consumes those goods and services. For conventional economics the market by way of the operation of supply and demand answer these questions. Under conditions of competition, where no one has the power to influence or set price, the market (everyone, producers and consumers together) determines the price of a product, and the price determines what is produced, and who can afford to consume it.
The concept 'demand' refers to the quantity of good or service that consumers are willing and able to purchase at various prices during a period of time. Demand is a flow concept.
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[ltr]All societies necessarily make economic choices. Society needs to make choices about, what should be produced, how should those goods and services be produced, and whom is allowed to consumes those goods and services. For conventional economics the market by way of the operation of supply and demand answer these questions. Under conditions of competition, where no one has the power to influence or set price, the market (everyone, producers and consumers together) determines the price of a product, and the price determines what is produced, and who can afford to consume it.
The concept 'demand' refers to the quantity of good or service that consumers are willing and able to purchase at various prices during a period of time. Demand is a flow concept.
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