Economics

Induced Demand

Induced Demand

Induced demand is the phenomenon that after supply increases, more of a good is ingested. This is entirely in step with the economic principle of supply and also demand; however, this idea has grown to be important in the debate in the expansion of transport systems, and is usually used as a quarrel against widening highways, such as main commuter roads. It is deemed by some to be a contributing factor to urban sprawl.