Induced demand, or latent demand, is the phenomenon that after supply increases, more of a good is consumed. This is entirely consistent with the economic theory of supply and demand; however, this idea has become important in the debate over the expansion of transportation systems, and is often used as an argument against widening roads, such as major commuter roads. It is considered by some to be a contributing factor to urban sprawl.
Read more about Induced Demand: Effect in Transportation Systems
Famous quotes containing the words induced and/or demand:
“Few can be induced to labor exclusively for posterity; and none will do it enthusiastically. Posterity has done nothing for us; and theorize on it as we may, practically we shall do very little for it, unless we are made to think we are at the same time doing something for ourselves.”
—Abraham Lincoln (1809–1865)
“All television ever did was shrink the demand for ordinary movies. The demand for extraordinary movies increased. If any one thing is wrong with the movie industry today, it is the unrelenting effort to astonish.”
—Clive James (b. 1939)