If you work in finance, accounting or economics, economic demand is the reason you have a job and that your company is in business. Why is economic demand important to your job? This is due to the fact that businesses will produce more of a product or item when it leads to increased profitability. The economic demand curve is inverse to the supply curve, which slopes upward from left to right, signaling an increase in supply as the price gets higher.
While demand is highly variable due to outside factors, the basic concept is that economic demand will decrease as price increases.Īs a graphical representation, the demand curve slopes downward from left to right, indicating low demand at high prices and high demand at low prices. What is the definition of economic demand?Įconomic demand is a principle that refers to a consumer’s demand for a particular product, as well as the price they’re willing to pay for that product.
As a job seeker or an employee, finding industries with high consumer demand can further your job prospects and provide a way to utilize your skill set. Without consumer demand, companies are unwilling to supply products, as there is no revenue or profitability by entering a market.
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