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What economic term refers to the willingness of the consumer to buy a commodity at a given price?
Follow. Demand is the quantity of consumers who are willing and able to buy products at various prices during a given period of time. Demand for any commodity implies the consumers’ desire to acquire the good, the willingness and ability to pay for it.
What is the willingness of a consumer to buy a commodity at a given price?
Demand is simply the quantity of a good or service that consumers are willing and able to buy at a given price in a given time period.
What does willingness to pay mean in economics?
“What the concept of ‘willingness to pay’ is telling us is that whatever your willingness to pay for a product might be, and wherever it comes from, you’re just not going to pay more than that [amount] for it,” says Harvard Business School Professor Bharat Anand in the online course Economics for Managers.
Which is the best definition of the term demand?
Definition: Demand is an economic term that refers to the amount of products or services that consumers wish to purchase at any given price level. The mere desire of a consumer for a product is not demand. Demand includes the purchasing power of the consumer to acquire a given product at a given period.
Which is not a demand of a product?
The mere desire of a consumer for a product is not demand. Demand includes the purchasing power of the consumer to acquire a given product at a given period. In other words, it’s the amount of products or services that consumers are willing and able to purchase.
When is a customer willing to pay a higher price?
Price isn’t the only feature that matters to customers. For example, legality, packaging, and brand name might matter as well.” When a customer has an urgent need that your product or service can address, they may be willing to pay a higher price than when their need is less urgent.