Demand

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Definitions and Basics

    Demand, from the Concise Encyclopedia of Economics
    One of the most important building blocks of economic analysis is the concept of demand. When economists refer to demand, they usually have in mind not just a single quantity demanded, but what is called a demand curve. A demand curve traces the quantity of a good or service that is demanded at successively different prices.

    The most famous law in economics, and the one that economists are most sure of, is the law of demand. On this law is built almost the whole edifice of economics. The law of demand states that when the price of a good rises, the amount demanded falls, and when the price falls, the amount demanded rises....
    Microeconomics, from the Concise Encyclopedia of Economics
    The strength of microeconomics comes from the simplicity of its underlying structure and its close touch with the real world. In a nutshell, microeconomics has to do with supply and demand, and with the way they interact in various markets....

In the News and Examples

    Cole on the Market for New Cars, podcast on EconTalk, June 9, 2008.
    Steve Cole, the Sales Manager at Ourisman Honda of Laurel in Laurel, Maryland talks with EconTalk host Russ Roberts about the strange world of new car pricing. They talk about dealer markup, the role of information and the internet in bringing prices down, why haggling persists, how sales people are compensated, and the gray areas of buyer and seller integrity....

A Little History: Primary Sources and References

    Indifference curves, diminishing marginal utility, and the demand curve: Gradations of Consumers' Demand, Book III, Chapter III from Principles of Economics, by Alfred Marshall
    There is an endless variety of wants, but there is a limit to each separate want. This familiar and fundamental tendency of human nature may be stated in the law of satiable wants or of diminishing utility.... [See also the Footnote: Illustration of a Demand Curve]

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