Marginal demand is the term in economics that refers to the change in demand for a product or service in response to a specific change in its price.
Normally, as prices for goods or service rise, marginal demand falls. And conversely, as prices for goods or services fall, marginal demand rises.
A product or service where price changes cause a relatively big change in marginal demand is said to have an elastic market. A product or service where price changes cause a relatively small change in marginal demand are said to have an inelastic market.
Famous quotes containing the words marginal and/or demand:
“In realms of knowledge, we bequeath our books,
And woe pursue who to a master quotes
The funnier of our witty marginal notes.”
—Philip Larkin (1922–1986)
“...America has enjoyed the doubtful blessing of a single-track mind. We are able to accommodate, at a time, only one national hero; and we demand that that hero shall be uniform and invincible. As a literate people we are preoccupied, neither with the race nor the individual, but with the type. Yesterday, we romanticized the “tough guy;” today, we are romanticizing the underprivileged, tough or tender; tomorrow, we shall begin to romanticize the pure primitive.”
—Ellen Glasgow (1873–1945)