Demand: One of the Pillars of Economics

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Demand and Quantity Demanded 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. Works Cited 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.

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