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What is latnet demand and the p. I. E. The concept of latent demadn is rather subtle. The term latent typically refers to something htat is dormant, not observable, or not yet realized. Demand is the notion of an economic quantity that a target population or market requires under different assumptions of price, quality, and distribution, among other factors. Latent demand, therefore, is commonly defined by economists sa the industry earnings of a market when that market becomes accessible and attractive to serve by competing firms. It is a measure, therefore, of potential industry earnings (p. I. E. ) or total revenues (not profit) if a market is served in an efficient manner.


