Household demand refers to the total amount of goods and services that families and individuals require for their daily living. This demand is influenced by various factors, including income levels, preferences, and the number of people in a household. Common items in household demand include food, clothing, and utilities. Understanding household demand is essential for businesses and policymakers, as it helps them predict consumer behavior and make informed decisions. For example, an increase in household income may lead to higher demand for luxury goods, while changes in population demographics can shift the types of services needed in a community.