What does Demand Stand for?

The notion of demand refers to a request, request, plea or request. The one who demands requests that something be given to him.

For example: “The kidnapper demands a million pesos to free the hostages”, “The demand for dairy products has grown in recent years”, “The government demands a greater effort from companies to prevent the advance of unemployment”.

In the judicial field, a lawsuit is a document that is presented before a judge or court with the intention of initiating a process.

Lawsuit in law

In the field of law, the demand is the request that the litigant formulates and justifies during a trial. It is also about the writing in which the actions are brought before the court or the judge: “The European Union filed a lawsuit against Microsoft for monopolistic activities”, “The actor threatened to sue those who publish photos of his son”.

The plaintiff (the one who files the lawsuit) must abide by different types of liability. Procedural liability requires payment of the costs of the trial (the plaintiff must pay if his claim is rejected for lack of foundation), while civil liability is specified with the payment of compensation to the defendant (when the claim is unfounded or includes a libelous accusation). Finally, criminal liability implies a criminal sanction and appears when the defendant commits a crime during the judicial process (such as the presentation of false documents).

The demand, in economics, is given by the sum of the acquisitions of services and goods at a certain moment.

Concept in economics

For the economy, demand is the sum of purchases of goods and services made by a certain social group at a given time. One can speak of individual demand (when it involves a consumer) or total demand (with the participation of all consumers in a market).

In this market , the quantity of the product that is demanded can vary, depending on several factors, fundamentally its price, its availability and the wealth and need of those who want to acquire it.

The price is one of the determining factors of a product and it is variable; this means that it can be modified over time, generally in cases where it is necessary from the eyes of the bidder.

If a product has a large outlet on the market, the decrease in its stock makes it more precious and, to achieve a better profit, the producers increase its price; On the other hand, if it is a product that has not had a great repercussion, its price is usually lowered in order to place it satisfactorily in the market.

The latter occurs especially in food goods, with an expiration date, in order not to lose everything invested in the manufacture or collection of the product, producers prefer to sell it before the expiration date at a price even lower than the expenses what it took to get it.

Demand curve

The demand curve allows us to know the relationship between the quantity demanded of a product and its price. That is, the amounts that consumers would like to purchase of a product based on a price and in a given time.

It is worth mentioning that, together with the supply curve, the demand curve is one of the tools used in the economic field to theoretically analyze the different states of the market and predict its future in order to establish future prices that favor the fluid exchange of goods and services. The space where both curves intersect is known as equilibrium. It is a point of intersection where both are on equal terms.

We can also say that demand is a mathematical function through which the availability and existence of a product in the market and the interest in it by consumers can be known. This merger is made up of several parts, where each acronym represents a certain part. Qdp (represents the quantity demanded), P (is the price of the good), I (refers to the consumer’s income), G (embodies tastes and preferences), N (number of interested consumers), Ps (represents the prices of substitute goods) and Pc (the price of complementary goods).