The need and ability to pay for a product is____________

Demand is the need and ability to pay for a product. In other words, demand refers to the quantity of a good or service that consumers are willing and able to purchase at a given price. Think of it this way: if you are hungry and have the money to buy a sandwich, you have the demand for a sandwich. If there is a store nearby that sells sandwiches, then the supply of sandwiches is available to meet your demand. The transaction occurs when you exchange your money for the sandwich. So, demand is the first step in the process of buying and selling goods and services. It drives the market and determines the price of products.