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The economic principle of demand concerns the quantity of a particular product or service that consumers are willing to purchase at various prices. Demand looks at a market's pricing and purchases from a consumer's point of view. On the other hand, the principle of supply underscores the point of view of the supplier of the product or service."}},{"@type": "Question","name": "What Is the Demand Curve?","acceptedAnswer": {"@type": "Answer","text": "The demand curve is a graphical representation of the law of demand. It plots prices on a chart. The line that connects those prices is the demand curve. The vertical axis represents prices of products. The horizontal axis represents product quantity. Typically, the curve starts on the left side high up the vertical axis and descends across the chart to the right. The slope indicates that as prices decrease, demand, as shown by growing number of products purchased, increases."}},{"@type": "Question","name": "What Is the Importance of Demand?","acceptedAnswer": {"@type": "Answer","text": "Economically speaking, the principle of demand has importance for both consumers and businesses that sell products and/or services. For businesses, understanding demand is vital when making decisions about inventory, pricing, and aiming for a particular profit. Consumers who have an understanding of demand can make confident decisions about what products to buy and when to buy them."}}]}]}] Investing Stocks Bonds ETFs Options and Derivatives Commodities Trading FinTech and Automated Investing Brokers Fundamental Analysis Technical Analysis Markets View All Simulator Login / Portfolio Trade Research My Games Leaderboard Banking Savings Accounts Certificates of Deposit (CDs) Money Market Accounts Checking Accounts View All Personal Finance Budgeting and Saving Personal Loans Insurance Mortgages Credit and Debt Student Loans Taxes Credit Cards Financial Literacy Retirement View All News Markets Companies Earnings CD Rates Mortgage Rates Economy Government Crypto ETFs Personal Finance View All Reviews Best Online Brokers Best Savings Rates Best CD Rates Best Life Insurance Best Personal Loans Best Mortgage Rates Best Money Market Accounts Best Auto Loan Rates Best Credit Repair Companies Best Credit Cards View All Academy Investing for Beginners Trading for Beginners Become a Day Trader Technical Analysis All Investing Courses All Trading Courses View All TradeSearchSearchPlease fill out this field.SearchSearchPlease fill out this field.InvestingInvesting Stocks Bonds ETFs Options and Derivatives Commodities Trading FinTech and Automated Investing Brokers Fundamental Analysis Technical Analysis Markets View All SimulatorSimulator Login / Portfolio Trade Research My Games Leaderboard BankingBanking Savings Accounts Certificates of Deposit (CDs) Money Market Accounts Checking Accounts View All Personal FinancePersonal Finance Budgeting and Saving Personal Loans Insurance Mortgages Credit and Debt Student Loans Taxes Credit Cards Financial Literacy Retirement View All NewsNews Markets Companies Earnings CD Rates Mortgage Rates Economy Government Crypto ETFs Personal Finance View All ReviewsReviews Best Online Brokers Best Savings Rates Best CD Rates Best Life Insurance Best Personal Loans Best Mortgage Rates Best Money Market Accounts Best Auto Loan Rates Best Credit Repair Companies Best Credit Cards View All AcademyAcademy Investing for Beginners Trading for Beginners Become a Day Trader Technical Analysis All Investing Courses All Trading Courses View All EconomyEconomy Government and Policy Monetary Policy Fiscal Policy Economics View All Financial Terms Newsletter About Us Follow Us Table of ContentsExpandTable of ContentsWhat Is Demand?Understanding DemandDeterminants of DemandThe Law of DemandDemand CurveMarket EquilibriumMarket vs. Aggregate DemandMacroeconomic Policy and DemandDemand FAQsEconomicsGuide to MicroeconomicsDemand: How It Works Plus Economic Determinants and the Demand CurveBy

Demand elasticity relates to how sensitive the demand for a product is as the price for it changes. For example, if there's a big change in demand due to a small change in price, demand elasticity is said to be high. Shoppers may choose attractive substitute products if the price for their usual product has increased somewhat. That could indicate high demand elasticity and is useful for businesses to know.

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The demand curve is a graphical representation of the law of demand. It plots prices on a chart. The line that connects those prices is the demand curve. The vertical axis represents prices of products. The horizontal axis represents product quantity. Typically, the curve starts on the left side high up the vertical axis and descends across the chart to the right. The slope indicates that as prices decrease, demand, as shown by growing number of products purchased, increases.

Economically speaking, the principle of demand has importance for both consumers and businesses that sell products and/or services. For businesses, understanding demand is vital when making decisions about inventory, pricing, and aiming for a particular profit. Consumers who have an understanding of demand can make confident decisions about what products to buy and when to buy them.

Demand response (DR) is a way for customers to help California manage its electricity demand. In Decision (D.)17-12-003, the Commission broadly defines demand response as reductions, increases, or shifts in electricity consumption by customers in response to their economic signals or reliability signals. Economic signals come in the form of electricity prices or financial incentives, whereas reliability signals appear as alerts when the electric grid is under stress and vulnerable to high prices. Demand response programs aim to respond to these signals and maximize ratepayer benefit.

DR traditionally involved customers reducing electricity consumption temporarily in response to economic or reliability signals. More recently, DR has evolved to encourage customer to shift electricity consumption from hours of high demand relative to energy supply to hours where energy supply is plentiful relative to demand. Future DR may involve customers increasing their electricity usage when the grid has too much electricity generation from renewable resources like the wind or sun.

All meetings listed below are intended for various stakeholders and other interested parties to discuss and provide input on the draft Demand Management Framework. Details will be updated as information becomes available. To RSVP to a meeting below, email demandmanagement@state.co.us with your name, organization and title, and which meetings you would like to join.

Demand response provides an opportunity for consumers to play a significant role in the operation of the electric grid by reducing or shifting their electricity usage during peak periods in response to time-based rates or other forms of financial incentives. Demand response programs are being used by some electric system planners and operators as resource options for balancing supply and demand. Such programs can lower the cost of electricity in wholesale markets, and in turn, lead to lower retail rates. Methods of engaging customers in demand response efforts include offering time-based rates such as time-of-use pricing, critical peak pricing, variable peak pricing, real time pricing, and critical peak rebates. It also includes direct load control programs which provide the ability for power companies to cycle air conditioners and water heaters on and off during periods of peak demand in exchange for a financial incentive and lower electric bills.

The electric power industry considers demand response programs as an increasingly valuable resource option whose capabilities and potential impacts are expanded by grid modernization efforts. For example, sensors can perceive peak load problems and utilize automatic switching to divert or reduce power in strategic places, removing the chance of overload and the resulting power failure. Advanced metering infrastructure expands the range of time-based rate programs that can be offered to consumers. Smart customer systems such as in-home displays or home-area-networks can make it easier for consumers to changes their behavior and reduce peak period consumption from information on their power consumption and costs. These programs also have the potential to help electricity providers save money through reductions in peak demand and the ability to defer construction of new power plants and power delivery systems -- specifically, those reserved for use during peak times.

One of the goals of the Smart Grid R&D Program is to develop grid modernization technologies, tools, and techniques to utilize demand response and help the power industry design, test, and demonstrate integrated, national electric/communication/information infrastructures with the ability to dynamically optimize grid operations and resources and incorporate demand response and consumer participation. To attain this goal, OE is supporting research, development and deployment of smart grid technologies, distribution system modeling and analysis, transactive energy, consumer behavior modeling, and analysis and high speed computational analysis capabilities for decision support tools ff782bc1db