The quantity requested is a term used in economics to describe the total quantity of a product or service requested by customers for a specified period of time. It depends on the price of a marketplace good or service, irrespective of whether that market is in equilibrium. The relationship between the amount requested and the price is known as the curve of demand, or simply the demand. The degree to which the quantity requested changes with regard to price is called demand elasticity.

Relationship between Price and Demand

Inverse Relationship of Price and Demand

The price of a product or service in a marketplace defines the amount that customers need. Assuming that the equation excludes non-price variables, a higher price results in a lower quantity requested and a lower price results in a higher quantity requested. Thus as stated in the law of demand, the price of a product and the quantity demanded for that product have an inverse relationship.

 

Change in Quantity Demanded

A change in the requested quantity refers to a change in a product’s particular quantity that consumers are willing and able to purchase. This change in the requested quantity is triggered by a price change.

 

Increase in Quantity Demanded

The increase in the amount requested is due to a reduction in the price of the commodity (and vice versa). The quantity requested and any price offered on the market are illustrated by a demand curve. A change in the quantity requested is portrayed as a motion along a demand curve. The proportion of changes in the quantity requested relative to price changes is known as demand elasticity and is related to the slope of the demand curve.