The term demand designates the need according to a property, expressed on a market.

Kinds of the demand

Since with respect to the economic science a large number is differentiated from markets, the term finds very broad application. Most important application is however the goods market. There the term designates

• in the the overall economic demand (also total demand, demand aggregated)
• in the micro-economic view the sum of the individual needs after goods of a single market, see demand

A great importance has the demand on the financial markets: On the money market the term designates the need of the restaurant subjects according to money, the demand for money in such a way specified. On the capital market a demand arises by the need of the capital takers of capital.

On the job market a removing labor demand of the enterprises leads to unemployment, if the work offer, i.e. the worker placed from restaurant economics to the order likewise do not decrease/go back.

The elasticity of the demand

With the direct price elasticity of the demand the different reactions of the demand to price adjustments are described. She gives information over it how the demand reacts to price adjustments. The demand can be relatively flexibly, relatively inelastically, perfectly flexibly or also perfectly inelastically.

Relatively flexible demand: With a one percent increase of the prices the demand quantity decreases/goes back around more than 1%, the expenditures decreases thus. With a lowering of the prices around 1% the demand quantity increases the expenditures by more than 1%, increases thus.

Relatively inelastic demand: With a one percent increase of the prices the demand quantity decreases/goes back around less than 1%, the expenditures increases. With a lowering of the prices around 1% the demand quantity increases the expenditures by less than 1%, decreases.

Perfectly inelastic demand: The demand does not react to price adjustments. If the prices increase, the expenditures increase. If the prices sink, the expenditures sink.

Perfectly flexible demand: If the prices change, the demand disappears.

The income elasticity of the demand indicates, how the inquired quantity changes with changes of income. If the incomes increase, the demand for so-called takes too (the elasticity is positive). The elasticity value indicates, to which extent the inquired quantity increases. At satisfying us goods the elasticity of the incomes is either negative or same zero.

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