What does demand refer to in the context of supply and demand?

Demand refers to the amount of a product that consumers want to purchase at various price points. It reflects consumers' desire for a product, combined with their ability to pay for it. When demand increases, consumers are willing to buy more of a product, often leading to changes in market dynamics, such as price adjustments and supply responses. Understanding demand is crucial for businesses as it helps them forecast sales and adjust their production and marketing strategies accordingly.

The other aspects mentioned, such as the quantity of the product available in the market or the advertising strategies, do not accurately capture the essence of demand itself. While pricing influences demand, demand is fundamentally about consumer want, which is the heart of market activity.