What is Demand?
Demand is the quantity of a product or service that consumers are willing to buy at a given price and time. It reflects consumer preferences, income levels, and market conditions.
Types of Demand
- 1. Elastic Demand: When a small change in price leads to a significant change in quantity demanded.
- 2. Inelastic Demand: When a change in price has little impact on the quantity demanded.
- 3. Unitary Demand: When the percentage change in price is equal to the percentage change in quantity demanded.
Factors Affecting Demand
Several factors influence demand, including price, consumer preferences, income levels, and market trends. For example, a decrease in the price of smartphones may lead to an increase in demand for these devices.
Case Study: Demand for Electric Vehicles
In recent years, there has been a growing demand for electric vehicles (EVs) due to concerns about climate change and rising fuel costs. As a result, EV manufacturers have seen a significant increase in sales and market share.
Statistics on Demand
According to a report by Statista, global demand for EVs is projected to reach 10 million units by 2025, compared to 2 million units in 2018. This demonstrates the increasing consumer interest in sustainable transportation options.
