Why demand not the same as consumption?

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1288167

2026-03-29 17:55

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Demand refers to the desire and ability of consumers to purchase a good or service at various prices, reflecting their willingness to buy. In contrast, consumption is the actual use or purchase of those goods and services by consumers. Factors like income, preferences, and prices can influence demand, while consumption is affected by availability, purchasing decisions, and market conditions. Thus, demand represents potential buying behavior, while consumption reflects realized transactions.

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