Consumer

A consumer is any entity (group or individual) that purchases a product or service for end consumption and not for any commercial purpose, such as for resale or manufacturing another product. End consumption could mean personal usage or use by family members, friends or relatives. If an individual buys a good on behalf of another […]

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Individual Demand

Individual demand is essentially an individual, household, family or firm’s demand for a product or service. In other words, individual demand is the amount of a particular good an individual buys during a specific period – which could be a year, month, week or any other time period. Compared to market demand, individual demand’s scope […]

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Market Demand

The market demand for a particular product or service is the total number of buyers in a market willing to buy that product or service. In other words, it’s all the individual demands for a particular offering put together. Market demand increases with increase in the number of buyers, and decreases when the buyer number […]

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Demand (Economics)

Demand is a consumer’s want or desire to buy a product backed by an ability to pay. If a person who earns 1000 dollars a month aspires to buy a Ferrari car, it cannot be perceived as demand as the buyer is not financially capable to buy the car. However, if a buyer who earns […]

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Lead Demand

Also called lead time demand, lead demand is the market demand for a particular product starting when a stock reorder is made and ends when the goods are delivered. To calculate lead demand, the daily sales numbers and total time it takes for the supplier to deliver the item from the date of order are […]

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