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