Economic demand refers to the quantity of a good or service that consumers are willing and able to purchase at various prices. It is influenced by factors such as consumer preferences, income levels, and the prices of related goods. When demand increases, it often leads to higher prices, while a decrease in demand can result in lower prices. The relationship between price and quantity demanded is typically represented by the demand curve, which slopes downward. This means that as prices fall, more consumers are likely to buy the product, while higher prices tend to discourage purchases. Understanding demand is crucial for businesses and policymakers in making informed decisions.