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"restrict demand" is correct and usable in written English.
You can use it when you want to talk about something that limits people's demand for something. For example, "The regulations set out by the government restrict demand for certain goods."
Exact(9)
"Never restrict demand.
Higher crude prices restrict demand, cooling the economy down.
And because most rich economies have bags of spare capacity, and tighter budgets would restrict demand, inflation would be unlikely to accelerate.This strategy has drawbacks nonetheless.
This is the equivalent of a new city almost two-thirds the size of London.But Serplanners point out that restricting supply may also restrict demand: people may stay at home longer, or move out of the south-east altogether.
Back then, governments of both left and right took action to boost supply and restrict demand, with the result that house prices rose only gently in the first 25 years after the second world war.
High prices invite fresh supply and restrict demand, which then lowers prices; government can ameliorate the pain of transition and enforce fair competition, but it is the unshackled working of the enterprise system that best balances supply and demand.
Similar(50)
The greatest curb on growth is restricted demand.
Its priority has been to control inflation by restricting demand.
"In the post-Sept 11 environment, the Transportation Department and the F.A.A. should focus on increasing capacity rather than restricting demand," Mr. Wascom added.
And it is good news for universities, who will no longer be constrained by distorting policies which seek simultaneously to promote competition while restricting demand.
The fact is that until the 3G wireless networks become a reality the potential of connected hand-held devices will remain untapped, restricting demand for Bluetooth.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com