Total Demand

Total demand refers to the overall amount of a product or service that consumers are willing and able to purchase at a specific price and time. It combines the desire for the item with the actual purchasing capacity of buyers, reflecting both interest and affordability. Total demand is influenced by factors such as consumer preferences, income levels, prices of related goods, and market conditions. Understanding total demand helps businesses and policymakers predict sales, make pricing decisions, and assess market health. It represents the comprehensive quantity consumers are prepared to buy under current market circumstances.