What is meant by 'demand' in the context of market analysis?

In the context of market analysis, 'demand' refers to the amount of a commodity that consumers are willing and able to purchase at a specific price. This concept is fundamental to economics as it directly influences market dynamics. Demand demonstrates the relationship between the price of a good and the quantity that consumers desire; typically, when prices decrease, demand increases, and vice versa.

Understanding demand is crucial for a tax assessor, as it can impact property values and the overall real estate market. By recognizing consumer buying patterns and preferences, assessors can make more informed evaluations of property values and market trends. Other options describe different aspects of the market but do not directly capture the essence of demand as a measure of consumer behaviour in relation to price.