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:
“Most works of art are effectively treated as commodities and most artists, even when they justly claim quite other intentions, are effectively treated as a category of independent craftsmen or skilled workers producing a certain kind of marginal commodity.”
—Raymond Williams (1921–1988)
“The mind demands rules; the facts demand exceptions.”
—Mason Cooley (b. 1927)