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What is the correct meaning of demand?

Answer and explanation

Correct answer: Customers' desire to buy a good or service

In basic business language, demand refers to customers’ desire or willingness to buy a good or service. In economics, effective demand is more precise: the desire is normally supported by ability and willingness to pay at a given price. The other options describe a seller’s decision, waste, or production unrelated to customer buying interest, so they do not define demand.

Related tags

DemandCustomerMarketConceptCharacteristics And Objectives Of BusinessConcept Characteristics And Objectives Of BusinessBusinessTrade And CommerceBusiness Trade And CommerceBusiness Studies

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