We explain what demand is and how it relates to supply. What are the assumptions that determine it? What is a lawsuit?
What is the market?
The concept of demand comes from the Latin demandāre and, in the first instance, is defined as a request or request. However, this concept is of great importance in economics and law, so its definition can be much broader.
The demand, in economics, refers to the number of goods or services the population intends to get to satisfy their needs or desires. These goods or services can be very varied, such as food, means of transportation, education, leisure activities, and medicines, among many other things, which is why it is considered that practically all human beings are demanding.
Demand is considered to be influenced by five assumptions that will determine its increase or decrease:
- Price. First, the cost of goods and services. That is the monetary value of the same. Prices are generally inversely proportional to demand.
- Offer. The second assumption is the provision of goods and services (supply), whether an individual or company offers them, and in what quantities.
- Place. Thirdly, the site can be mentioned as the medium in which the goods or services are offered; this space can be physical or virtual.
- Payment capacity. In fourth place is the applicant’s ability to pay, that is if he has the monetary means to access the goods.
- Needs. The last assumption that can be mentioned is wanted and needs. Requirements are essential, such as food, clothing, etc. Wants are more specific desires like buying clothes from a particular brand.
Demand is studied in economics and supply, that is, the number of goods or services available for sale. Both are analyzed jointly since these two are the ones that determine the number of goods and services that will be produced and the economic value that they will have.
From a legal point of view, the claim is understood as a lawful request in which the shares are formulated by one of the actors. It is intended that a judge intervene, either for the protection or recognition of the request.
The claim must be submitted in writing, stating its reason and the law supporting it. Some of the mandatory requirements that the lawsuit must present are the data of the defendant and the plaintiff, the facts that lead to the demand, expressed precisely, the thing that is demanded, what is intended, saying it positively and clear, and finally the right that you want to assert.
The effects of a legal claim can be very diverse. They can be procedural or substantial. The former refers to the actor’s plaintiff, the defendant, and the judge. They are multiple in the case of significant effects, and their classification is difficult since the same claim appeals to various rights.