Quantity Demanded


DEFINITION of '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.

  1. Elastic

    A situation in which the supply and demand for a good or service ...
  2. Inelastic

    An economic term used to describe the situation in which the ...
  3. Economic Equilibrium

    A condition or state in which economic forces are balanced. These ...
  4. Elasticity

    A measure of a variable's sensitivity to a change in another ...
  5. Price Elasticity Of Demand

    A measure of the relationship between a change in the quantity ...
  6. Income Elasticity Of Demand

    A measure of the relationship between a change in the quantity ...
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  1. Why is there a negative correlation between quantity demanded and price?

    The law of demand is an economic principle that explains the negative correlation between the price of a good or service ... Read Full Answer >>
  2. Which factors have the most influence on the law of demand?

    According to economic theory, the law of demand states that the relative demand for a good or service is inversely correlated ... Read Full Answer >>
  3. If a country's currency is determined by the strength of its economy, why isn't the ...

    Generally speaking, when Country A's currency is worth more than that of Country B, it does not necessarily mean that Country ... Read Full Answer >>
  4. How do you make working capital adjustments in transfer pricing?

    Transfer pricing refers to prices that a multinational company or group charges a second party operating in a different tax ... Read Full Answer >>
  5. Do interest rates increase during a recession?

    Interest rates rarely increase during a recession. Actually, the opposite tends to happen; as the economy contracts, interest ... Read Full Answer >>
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