Concept of Demand

Goods are demanded because they have utility. Demand is that quantity of a commodity which a person is ready to buy at a particular price and during a specific period of time. When price of sugar is Rs. 30 per kg the demand for it is 10 kgs per week. The reference of price and time is essential for demand, because demand differs with price and time. Thus following features of demand are clear from above.

1. Utility is the base of demand.
2. Demand is a relative concept.
3. Reference of price and time is necessary for demand.