demandatus

Demandatus is a neologism used in economic theory and related discourse to denote a measure of latent or unmet demand within an economy. The term, derived from Latin roots relating to demand, is employed to distinguish observed purchases from a broader potential demand that could be realized under different conditions.

Definition and measurement

In practical use, demandatus is defined as the difference between potential demand and realized demand at given prices, incomes, and tastes. Potential demand is estimated from consumer surveys, income constraints, preferences, and prevailing price levels; realized demand is the actual quantity purchased. Demandatus thus captures goods or services for which consumers would be willing to pay if available, but which are not currently supplied in sufficient quantity.

Applications

In theoretical models, demandatus helps explain persistent price pressures, shortages, or underinvestment in sectors with unmet demand. It can inform policy discussions about subsidies, price controls, or investments in supply, and it may be used to forecast the effects of removing constraints on availability or affordability.

Limitations and critique

The concept faces measurement challenges because it relies on hypothetical valuations and model assumptions. Critics point to risks of double counting, confusion with pent-up or speculative demand, and difficulties in separating unmet demand from other market frictions such as information gaps or regulatory distortions.

See also

Latent demand; Unmet demand; Market equilibrium; Consumer surplus; Economic indicators.