Demand, alongside supply, is the most fundamental aspect of the Economic Theory, referring to the ability and willingness of consumers to purchase a product or service.
Demand is said to be “latent” if a buyer needs or is willing to purchase a particular product or service, but does not have the ability to pay. Effective demand, on the other hand, is where a buyer’s income, perception and need correspond to result in an actual purchase rather than a mere desire to purchase.
