What is demand? Source The the picture shows some people having some people having coffee. Because it is their demand Economists use the term demand to refer to the amount of some good or service consumers are willing and able to purchase at each price. Demand is based on needs and wants—a consumer may be able to differentiate between a need and a want, but from an economist’s perspective, they are the same thing. Demand is also based on the ability to pay. If you can’t pay for it, you have no effective demand. What a buyer pays for a unit of the specific good or service is called the price . The Quantity of Demand The total number of units purchased at that price is called the quantity demanded . if a product of price increase, the quantity demand decrease. Conversely, a fall in price. will increase the quantity demanded. for example, people look for ways to reduce their consump...