What two factors are necessary for demand? desire for a good or service and its availability in the market desire for a good or service and the ability to pay for it the availability of a good or service and the ability to pay for it familiarity with a good or service and the desire to pay for it

## Step 1<br />The concept of demand in economics is defined as the desire for a good or service, coupled with the ability to pay for it. This means that for a demand to exist, two conditions must be met:<br /><br />1. There must be a desire or need for the good or service. This means that the consumer must want or need the product or service.<br /><br />2. The consumer must have the ability to pay for the good or service. This means that the consumer must have the financial means to purchase the product or service.<br /><br />## Step 2<br />The availability of a good or service is not a factor in demand. This is because the availability of a good or service is related to the supply of the product, not the demand.<br /><br />## Step 3<br />Familiarity with a good or service is also not a factor in demand. This is because familiarity with a product does not necessarily mean that the consumer wants or needs it.