Product Demand

Product demand refers to the quantity of a specific product that consumers are willing and able to purchase at a given price over a certain period. It is a key concept in economics and marketing, reflecting the desire and financial capacity of consumers to buy a product. Factors influencing product demand include consumer preferences, income levels, price of the product, availability of substitute goods, and overall market conditions. Understanding product demand helps businesses make informed decisions about production, pricing, and inventory management, ensuring they can meet consumer needs effectively. The relationship between product demand and price is typically inversely proportional—when prices rise, demand usually falls, and vice versa, which is illustrated by the demand curve in economic theory.