Quick Definition

Quantity demanded refers to the total amount of a good or service that consumers are willing and able to purchase at a specific price level, within a given time period.

Examples

• 1If the price of coffee drops from $5 to $3 per cup, the quantity demanded might increase as more consumers find it affordable.
• 2During a sale, a clothing store reduces the price of jeans by 20%, leading to an increase in the quantity demanded as customers take advantage of the lower prices.
• 3When a new, cheaper smartphone model is released, the quantity demanded for the older, more expensive models may decrease.

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