Goods are demanded, because they have utility. A good is demanded by everyone, who thinks that it is useful in satisfying his want. Alcohol, though actually harmful to a person, is demanded by one whose want it satisfies. If, however, a commodity gives disutility, it is not demanded. Such commodities are called ‘economics bads’. Pollution, noise and dust are some examples.
A teetotaler may not have any demand for it, since; he does not have a desire for its consumption. But, every want of a consumer cannot be expressed as demand in the economic sense of the term. Demand does not mean mere desire for a commodity. For example, a miser’s desire and his ability to pay rent for a room of a hotel is not ‘demand’, as he is not willing to pay for it.
Similarly, a beggar may desire to have a car, but this desire is not going to affect its market price as he is not having the necessary purchasing power to buy a car. Such a desire, which is not backed by the necessary purchasing power to fulfill it, will remain a desire and will never become the demand.
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To become demand, a desire, (i) must be backed by the ability or the capacity to pay for the good, and (ii) the willingness on the part of the consumer to spend for the good. A demand is, thus, an effective desire. Further, a demand which cannot be met due to shortage of commodity is called an insatiable demand.
Demand is always defined with reference to price and a time period. Thus, it is allow concept it is meaningless to specify demand without reference to price and time period. The statement that demands for apples is 2000 kg. is meaningless.
The price at which these apples are demanded is to be mentioned, as with the change in price, the quantity demanded may also change. Demand is also expressed with reference to time. Even at the same price, demand may change, depending upon the time period under consideration.
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Thus, at Rs. 10 per kg. demand for apples may be different at different times during a particular period. Demand for a good may be defined as the, “quantity of a commodity that will be bought at a particular price and during a given period or point of time.”