Eftirspurnin

Eftirspurnin is an Icelandic term that translates to "demand" in English. In economics, it refers to the quantity of a good or service that consumers are willing and able to purchase at various prices during a specific period. The law of demand states that, all other factors being equal, as the price of a good or service increases, the quantity demanded will decrease, and conversely, as the price decreases, the quantity demanded will increase.

Several factors can influence eftirspurnin beyond price. These include consumer income, tastes and preferences, the prices of related goods (substitutes and complements), expectations about future prices or income, and the number of buyers in the market. For example, if consumer incomes rise, the demand for normal goods will likely increase, while the demand for inferior goods might decrease. Similarly, if the price of a substitute good rises, the demand for the original good may increase.

Understanding eftirspurnin is crucial for businesses in setting prices, determining production levels, and forecasting sales. It is also a fundamental concept for policymakers when analyzing market behavior, assessing the impact of taxes or subsidies, and formulating economic strategies. The relationship between price and quantity demanded is typically represented graphically by a demand curve, which slopes downward from left to right.