Legal Definitions - demand

Definition: Demand can have different meanings depending on the context. In legal terms, it means to request something forcefully or under legal authority. For example, a demand letter is a legal document that initiates a dispute resolution process where one party seeks performance or abstention from a specific action, or monetary restitution to settle a claim.

In economics, demand refers to the relationship between the quantity of a product produced and the desire of consumers to purchase that product. It is the amount of a good or service that consumers are willing and able to buy at a certain price and time.

Examples:

• Legal: A person who has been injured in a car accident may demand compensation from the driver who caused the accident.
• Economics: If the price of a cup of coffee increases, the demand for coffee may decrease as consumers may choose to buy a cheaper alternative or reduce their consumption of coffee.

The legal example illustrates how demand can be used to request something under legal authority. The economic example shows how demand is affected by changes in price and how consumers may adjust their purchasing behavior accordingly.