Demand, as you might think, isn't just about what you wish for on your birthday. In the world of economics, it's much more specific. It's the relationship between the various possible prices of a good (like your favorite chocolate) and the quantities that buyers, like you and me, are willing and able to purchase in a given time period. Picture a sliding scale that adjusts the amount of chocolate we want to buy based on its price tag. This "willingness" and "ability" aspect is very important - it's not just about wanting that chocolate, but also having the cash to buy it.

Here's a phrase that'll make you sound super smart - ceteris paribus. It's Latin, and economists use it to say "all other things being equal." When we talk about demand, we assume that everything else (income, tastes, the price of other goods) stays the same.

Let's put this in the context of our chocolate example. If the price of your favorite chocolate drops, you'd likely buy more (because who doesn't love a sweet deal?), assuming everything else stays the same (ceteris paribus).

• Demand is not just about desire, but also about being able to purchase something.
• The quantity demanded can change based on the price of the good.
• Ceteris Paribus is the assumption that all other factors remain the same when studying the effect of one variable.