Demand is the economic term for the cumulative wants and desires of consumers as they relate to a particular good or service. Generally speaking, if all other factors remain constant, as demand increases for a good, so does the price of that good. Think of demand in the context of an auction.  If only one person bids on the item being auctioned, the price does not move.  But if a lot of people start bidding, the price goes up. The more people who bid, the higher the price continues to go. There are a number of influences on demand.  Population affects demand simply because more people create more wants. Consumer preferences also affect demand, because as preferences change, people will want, or not want, certain goods. For instance, a company that sells snowshoes will experience higher demand for them in the winter months than in the summer. One of the most obvious influences is price.  Generally an increase in price decreases demand, whereas a decrease in price increases demand.  In very limited circumstances, an increase in price can actually increase demand.  This is usually the case for high-end goods that function as status symbols, such as high-performance sports cars or luxury accessories.