Meaning of demand
- Desire backed up by ability and willingness to pay
- Quantity of a commodity that a consumer want to purchase at a certain price during a certain time period.
Mere desire is not sufficient for demand. The consumer must have ability to pay and willingness to pay for fulfillment of desire. For demand all desire, ability and willingness to pay are required. In absence of one or more of them demand doesn’t arise.
To express demand the following things must be specified
- Quantity
- Price
- Time duration
- Ability to pay
- Desire
- Willingness to pay
Example
- If a beggar has the desire of a big apartment then that is not demand ( no ability to pay)
- A man with salary of Rs 25000 a month, wants to buy vegetable of Rs. 35 for a week then that is called demand ( all price, time, ability, willingness and desire)
Differences between demand and desire
| Serial no | Demand | Desire |
| 1 | It is the desire or want backed up by ability and willingness to pay. | It is simply human want |
| 2 | It is limited | It is unlimited |
| 3 | It is always for the things available in the market | It may be for intangible and imaginary things too |
| 4 | It has a market value | It may or may not have market value |
| 5 | Ability and willingness to pay is mandatory. | Ability and willingness to pay are not mandatory. |
| 6 | It is expressed with reference to price and time duration | It is not expressed with time and price duration. |
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