Question

What is the difference in demand in terms of everyday life and demand in economic concepts

Answer 1

Demand is a fundamental concept in our daily life and also in market economy. It is consumer’s willingness for the payment of goods and services. The root of everything comprises towards demand and supply. The demand for necessary goods like food, clothing, shelter etc. of an individual considers as his/her individual demand. The price which they paid for this goods determine the demand for each of the goods. Among individual demand it will varies for different income groups. Based on the income line, the consumption buddle will change. In daily life the taste and preference and the income level are the major determines of the demand for respective individual
In economics demand and supply are the backbones. Demand is the quantity that consumer’s purchased at various price level with give period of time. Law of demand is one of the most important law in economics. This law shows the inverse relation between price and quantity demanded. There are several factors which determine the quantity demanded in the market. Most important among them are price of that particular commodity, price of other related goods, disposable income of the consumers, expectation about future prices by the consumer, level of population etc. The market demand will be different for different market structures.