If you live under a democratic government that conducts its own foreign and domestic policies, in an area with a territory of 50 square miles and a population of 50,000, that area qualifies as a

State

Explanation:

A state is a system of political with a central authority, military presence, public sector, organized society, and education. The state is considered obligated to territorial integrity, and is distinguishable without centralized institutions from tribal groups or departments.

Since in the question it is mentioned that there is a territory of square miles and a 50,000 population so the area entitled to be a state

it refers to race, i am pretty sure this was a popular term in nazi germany or something.

demand is the need and oportunity to buy a given good or service.