Difference Between Demand vs Quantity Demanded
Today, we’re looking at the phrases “demand” as well as “quantity demanded.” We’ll be highlighting how and why they’re both different. Both words seem precisely identical on paper, but the difference between demand and quantity demanded is genuinely quite significant and relates to two entirely separate areas of consumerism.
We’ll compare context frameworks and precisely what defines each of them. This should allow you to walk away with a full understanding of both phrases and no further confusion. Ready to find out more? Let’s get to it.
Definition of Demand
The precise meaning of demand is: “Someone’s affordability and willingness to pay a price for a specific economic product or service.” Using the above sentence as a reference point, we can see that insistently requesting something is essentially demand.
What makes this separate to demanding set amounts of something is that you aren’t dealing with a specific request. Demand yields a need to ask for a quantity of something in the first place.
A great example is the music industry where fans of a particular band will repeatedly request new material. This means that they are creating a strong “demand” for its production. However, it’s not until the creation of that material and a new album that we start to see a quantity requests begin to manifest.
When something has been created (like an album), we then need to acquire enough units of it to precisely meet the demand (or insistent requests) of everyone wanting to purchase it. One, then, is the foundation on which you base the other. We’ll now explain this even further.
Definition of Quantity Demanded
An exact description of quantity demanded is: “The precise amount of goods required and at a specific price.” So, it’s clear that any difference between quantity demanded and demand primarily relates to specifics and numbers.
If you’re asking for (or demanding) a quantity, you’re asking for a set number of it. This set amount is needed as a means of adhering to a more general demand that has been created by a collective group.
When enough interest (aka demand) is displayed, it’s then up to a company or individual to determine how many units they need to satisfy the level of interest. This is usually done as specifically as possible for effective cost reasons. Weighing up demand vs quantity demanded is an excellent way for companies to meet their revenue targets as economically as possible for maximum profit gain.
Main Differences Between Demand vs Quantity Demanded
Throughout this section, we’ll provide you with a table that outlines the key areas that set these two phrases apart in an easily accessible format.
|Basis of Comparison||Demand||Quantity Demanded|
|Definition||A list of quantities that would theoretically be acquired at various costs||The precise amount of products or services desired and their costs|
|Exact meaning||A willingness to buy||An exact amount to buy and at an exact price|
|How does it change?||It can decrease or increase||It can contract or expand|
|Reasons that may lead to changes?||Several reasons other than cost, impacts willingness to buy||Reasons are purely based on costs|
|What happens to them when a price is changed?||Remains unaffected||Leads to a change in the quantity demanded|
Difference Between Demand and Quantity Demanded: Conclusion
As you can see with all of the information we’ve outlaid today, there is a significant difference at play here between these two phrases and precisely how they weave into everyday consumerism. An easy way to resolve the demand vs quantity demanded debate is with the following sentence: “Quantity demanded cannot occur without the existence of demand first.”
This means that you need enough requests (or a demand) for something first before you can demand a specific amount of anything to cater for it. Using this sentence and our quick reference table, you can refresh your memory on this subject with a fast glance any time you face confusion over it.