Demand facts for kids

Demand is how much people want to things or services at a certain price. It shows how much something is needed or wanted by buyers. Think about your favorite snack. If many people want it, its demand is high!

This picture shows how demand can change. D1 and D2 are different demand levels. S is the supply. P is the price, and Q is the amount. When demand goes from D1 to D2, it means more people want the item.

What is a Demand Curve?

The connection between how much something costs and how much people want to buy it is called the demand curve. Imagine a graph. It shows that usually, if the price of something goes up, people want to buy less of it. If the price goes down, people want to buy more. This is a basic rule in economics.

The Law of Supply and Demand

This idea is part of the law of supply and demand. It's a big rule in economics. It says that when prices go up, demand usually goes down. And when prices go down, demand usually goes up. They have an opposite relationship. For example, if a new video game is very expensive, fewer people might buy it. But if it goes on sale, many more people might want it!

What Affects Demand?

Many things can change how much people want to buy something. Here are some important ones:

• Need: How much do people really need the item? People need food more than a fancy toy.
• Price: How much does it cost? A lower price often means more people will buy it.
• Quality: Do people think it's a good product? High quality can make demand higher.
• Convenience: Is it easy to get? If something is hard to find, fewer people might buy it.
• Other Options: Are there similar products available? If there are many choices, demand for one specific item might be lower.
• Money: How much money do people have to spend? If people have more money, they might buy more things.
• Tastes: What do people like? Trends and personal preferences can greatly affect demand.

For example, if it suddenly starts raining, more people will want to buy an umbrella. This is because their need for an umbrella goes up due to the weather.

Predicting Future Demand

Businesses often try to guess how much people will want their products in the future. This is called demand forecasting. They use information about past sales, current trends, and other factors to make smart guesses. This helps them decide how much to make or order.

See also

In Spanish: Demanda (economía) para niños