Demand facts for kids
Demand is the total amount of goods or services which people want to buy, for a set price. The demand for an item indicates how much it is needed or wanted.
The relationship between price and quantity demand is called the demand curve. Prices go up when supply is less, and demand is more. It follows the law of supply and demand where as price increases, demand decreases and vice versa, showing an inverse relationship between quantity demanded and price.
Demand for a specific item depends on an item's necessity, price, perceived quality, convenience, available alternatives, purchasers' disposable income and tastes, and many other options. This list is not exhaustive. All facts and circumstances that a buyer finds relevant to his willingness or ability to buy goods can affect demand. For example, a person caught in an unexpected storm is more likely to buy an umbrella than if the weather were bright and sunny.
Demand forecasting tries to predict how demand will change in the future.