What is Demand?

By Saherah Luhnat Noor, EconoHeart

"Demand" is a word to describe how much people want or need something. Let's say you love ice cream and want to buy some. If there are lots of other kids who also want ice cream, then the demand for ice cream is high. But if nobody wants it, then the demand is low.

In an economy, people buy things they need or want with their money. The more people want or need, the higher the demand for it will be. And when there is a high demand, that usually means it will cost more money to buy as there are only a limited amount of resources (like milk, sugar, and time) to make it.

So, demand is important as it helps determine the prices of things we buy and sell in an economy.

You can watch this reel for a better understanding of this concept.




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