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In economics it is a term for the call or need within a market for a particular commodity. It is effective demand when a person's wants or needs are endorsed by the person's ability to pay ( income and/or wealth). When this commercial demand is met by virtually zero supply, there is said to be a market gap .
"Demand" is often used as short-hand for the demand curve, which represents the general state of effective demand at any specific time, given the number of buyers, their wants (and the intensity of their wants), their income and wealth, and so forth. The demand curve summarizes the idea that if the price of a commodity rises, the amount demanded falls (all else constant). (Similarly, if price falls, the quantity demanded rises.)
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In economics the word DEMAND means something quite different to what it means in every day language. This subtle difference of language allows us to easily import metaphores to the discussion that are inappropriate.
In everyday lanaguage we might say something like "Mother demanded that her teenage son tidy his room". In such a situation we might say that demand created action and we would be largely correct.
However the word DEMAND as used in economics does not mean EXTOLE or INSIST or COMMAND. Neither does it mean DESIRE or WANT or NEED. At times all these concepts are incorrectly related to the word DEMAND in the economic context.
To discern how economics works it is important that the word DEMAND (as it applies in economics) is correctly understood.
If DEMAND does not mean EXTOLE or INSIST or COMMAND and it does not mean DESIRE or WANT or NEED then what does it really mean?
In econonomics DEMAND is one side of a transaction. The other side is usually called SUPPLY. However the difference between SUPPLY and DEMAND is merely a matter of viewpoint.
If "person-A" engages in a transaction with "Person-B" and "Person-A" barters 6000 potatoes for 5 sheep then which of them is DEMANDING and which of them is SUPPLYING?
Even if they are swapping 6000 dollars for 5 sheep then one of them is supplying dollars and the other is supplying sheep. The sheep farmer might say that the other party is SUPPLYING him with an income.
The reality of economics is that all transactions are SUPPLY and SUPPLY. Both parties to any voluntary exchange are always suppliers.
DEMAND in its economic sence is not a motivation. It is not a DESIRE or WANT or NEEED. DEMAND is an act. And it is the act of supplying something in a transaction in order to gain something else.
This is not to say that the act is not preceded by motivations such as NEED or WANT or DESIRE. However there is a world of difference between motivation and action. DEMAND is an action not a motivation.
In order to engage in the act of DEMAND a market participant must be in a position to SUPPLY.
Economics
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