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.
Frequently asked questions
What is the correct answer to this question?
Customers' desire to buy a good or service
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Business, Trade and Commerce. Topic: Concept, characteristics and objectives of business.
