What is a Want: The basis of all economic activities is the existence of human wants and the process of fulfillment of this want is the base of economic activity.
Desire/ Want :
“Desire is the wish to have something. But ‘want’ is an effective desire for a particular thing, which can be satisfied by making an effort to acquire it.
Want can be used for demand but Desire can not be.
Definition - Demand may be defined as the amount of the commodity an individual is willing to buy at a particular price and at a particular time.
q = f(p) It means quantity demanded is a function of Price
Here q= quantity demanded and P = price of the commodity.
The relationship between demand and Price can be understood by -
The above table represented in the form of graph is called Demand curve
The Demand curve states a negative relationship between price and quantity demanded.
As the price decreases, the quantity demanded increases and vice versa.
FACTORS affecting DEMAND
· Change in consumer tastes
· Change in the number of buyers
· Change in consumer incomes
· Change in the prices of complementary and substitute goods
· Change in consumer expectations