Demand

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Demand

Meaning:

Demand is defined as the quantity of a product or service that consumers are willing and able to buy at a specific price and time. It reflects how much consumers desire a

product and their readiness to pay for it.

Example:

For example, if a smartphone is priced at ₹25,000 and there is significant interest from buyers, this indicates strong demand for that device.

How to understand demand:

Demand drives production, as companies manufacture goods based on consumer preferences. It influences pricing; high demand can lead to higher prices, while low demand may result in price reductions.

Uses of Demand:

Market Forecasting: Predicting future sales and trends based on demand patterns.

Pricing Strategy: Setting prices according to customer interest and willingness to pay.

Product Development: Creating or improving products that consumers want.

Resource Allocation : Using demand data to optimize supply and reduce waste.

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< Back

Demand

Meaning:

Example:

For example, if a smartphone is priced at ₹25,000 and there is significant interest from buyers, this indicates strong demand for that device.

How to understand demand:

Demand drives production, as companies manufacture goods based on consumer preferences. It influences pricing; high demand can lead to higher prices, while low demand may result in price reductions.

Uses of Demand: