Quantity Demanded

Loading the player...

What is 'Quantity Demanded'

A term used in economics to describe the total amount of goods or services that are demanded at any given point in time. The quantity demanded depends on the price of a good or service in the marketplace, regardless of whether that market is in equilibrium. The quantity demanded is determined at any given point along a demand curve in a price vs. quantity plane.

BREAKING DOWN 'Quantity Demanded'

When a given quantity of a good or service is demanded, as determined by its price, it will then impact the amount of goods or services that will be purchased. The degree to which the quantity demanded changes with respect to price is called elasticity of demand.

RELATED TERMS
  1. Demand Schedule

    In economics, the demand schedule is a table of the quantity ...
  2. Equilibrium Quantity

    The quantity of an item that will be demanded at the point of ...
  3. Income Elasticity Of Demand

    A measure of the relationship between a change in the quantity ...
  4. Income Effect

    In the context of economic theory, the income effect is the change ...
  5. Demand Curve

    The demand curve is a graphical representation of the relationship ...
  6. Cross Elasticity Of Demand

    An economic concept that measures the responsiveness in the quantity ...
Related Articles
  1. Economics

    Explaining Quantity Demanded

    Quantity demanded describes the total amount of goods or services that consumers demand at any given point in time.
  2. Professionals

    Supply and Demand

    Supply and Demand
  3. Professionals

    Supply and Demand

    Supply and Demand. Focuses on price movements caused by shifts in the demand or supply curve.
  4. Economics

    Economics Basics: Supply and Demand

    Investopedia explains: The Law of Demand, The Law of Supply, Supply and Demand Relationship, Equilibrium, Disequilibrium, and Shifts vs. Movement
  5. Economics

    Economics Basics: Conclusion

    Recap of the key learnings from Investopedia's economics tutorial .
  6. Professionals

    Shifts Vs. Movement and Elasticity

    Shifts Vs. Movement and Elasticity
  7. Economics

    Calculating Cross Elasticity of Demand

    Cross elasticity of demand measures the quantity demanded of one good in response to a change in price of another.
  8. Economics

    Law of Demand

    The law of demand is one of the most fundamental principles in microeconomics. It's all about how price affects demand. According to the law of demand, for all other things remaining constant, ...
  9. Professionals

    Price Elasticity

    Price Elasticity. Learn about price elasticity and its effects on the demand curve.
  10. Professionals

    International Finance

    CFA Level 1 - International Finance Basics. Discusses how the exchange rate influences supply and demand. Looks at the two main factors affecting the supply and demand for currency.
RELATED FAQS
  1. Why is there a negative correlation between quantity demanded and price?

    Learn what the law of demand is, the basic assumption of the law of demand and why there is a negative correlation between ... Read Answer >>
  2. What are some examples of demand elasticity other than price elasticity of demand?

    Learn about income elasticity of demand and cross elasticity of demand and how to interpret these two measures of demand ... Read Answer >>
  3. Which factors are more important in determining the demand elasticity of a good or ...

    Learn about demand elasticity of goods and services and the main factors that influence the elasticity of demand. Read Answer >>
  4. How does the law of supply and demand affect prices?

    Learn what the law of supply and demand is, what relationship it has with prices, and how the law of supply and demand affects ... Read Answer >>
  5. What are some examples of the law of demand in real markets?

    Find out how the price of a good or service affects the quantity demanded, and explore instances of consumption reflecting ... Read Answer >>
  6. How can Economic Order Quantity be used to lower inventory costs?

    Learn what economic order quantity is, how it is calculated and how to find the optimal economic order quantity to minimize ... Read Answer >>
Hot Definitions
  1. Goodwill

    An account that can be found in the assets portion of a company's balance sheet. Goodwill can often arise when one company ...
  2. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  3. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  4. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  5. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center