Fisheries Economics

Demand

Demand is a desire backed up with the necessary purchasing power and the willingness to pay for it.

Law of Demand states that,

“When the price of a good increases, its demand decreases and vice versa”.

Demand function shows the determinants of demand. The demand function may be specified as follows,

D=f (P_x, P_y, I)

where,

D = Demand

P_x = Price of good

P_y = Price of substitute good

I = Income of the consumer