Understanding Demand Economics: Definition, Examples, and Case Studies

Learn about demand economics, factors influencing demand, and real-world examples. Discover how consumer behavior impacts the market.

What is Demand Economics?

Demand economics is the study of how the quantity of goods or services consumers are willing and able to purchase at a given price and time.

Factors Influencing Demand

  • Price of the product
  • Income levels
  • Consumer preferences
  • Price of related goods


For example, if the price of gas increases, consumers may be less likely to purchase gas guzzling automobiles, leading to a decrease in demand for those vehicles.

Case Study: iPhone Demand

When Apple releases a new iPhone model, the demand is often high due to consumers wanting the latest technology. This results in long lines at stores and pre-orders selling out quickly.


According to a study by the University of Michigan, consumer confidence in the economy can significantly impact demand for products and services.

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