Question

You and a friend go clothes shopping and find a great pair of jeans. They fit you perfectly, but they also cost $100. You are willing to buy them, but you only have $50 in your wallet to spend on new clothes. Your friend likes the jeans and has the money to buy them. The jeans would count as a demand for _____.

Answer 1

Your friend, because he likes the jeans and has the money to buy them

Answer 2

Answer: your friend.

For demand to exist, two requirements are necessary. First, there has to be a desire to buy a product. In this case, both you and your friend want to buy the jeans. However, the second requirement is to have the ability to pay for the product. Although you would like to get the jeans, only your friend has enough money. Therefore, the demand exists only in your friend's case.