Meaning of Demand - Market Demand Analysis, Business Economics & Finance | Business Economics & Finance - B Com PDF Download

In general, to "demand" means to "ask for urgently." That said, the concept of demand takes on a very particular, and somewhat different, meaning in economics. Economically speaking, to demand something means to be willing, able and ready to purchase a good or service. Let's examine each of these requirements in turn:

• Willing to purchase: Being willing to purchase simply means that one likes an item enough to want to buy it, and this is usually what people think of when they encounter the concept of demand. However, it's important to remember that, while it's good to want things, desire to purchase is not the only requirement for economic demand.
• Able to purchase: Wanting to purchase an item doesn't mean a whole lot if one doesn't have the means to make the transaction happen. Therefore, the ability to purchase is another important factor of demand. Economists don't specify how an individual must be able to pay for an item- she can pay with cash, check, credit card, money borrowed from friends or taken from the piggy bank, etc.
• Ready to purchase: Demand is, by its nature, a current quantity, so an individual is only said to demand something if she is willing and able to purchase it now as opposed to some point in the future.