In microeconomics, which of the following best defines demand?

• A. A schedule or curve showing the quantities of a good that firms are willing and able to sell at various prices, holding other factors constant.
• B. A schedule or curve showing the quantities of a good that consumers are willing and able to buy at various prices, holding other factors constant.
• C. The total revenue a firm receives from selling a good, calculated as price times quantity.
• D. The amount of a good consumers purchase at a single price, regardless of income, tastes, or prices of related goods.

Answer: (B)

Verified step by step guidance

1. Understand that demand in microeconomics refers to the relationship between the price of a good and the quantity that consumers are willing and able to purchase, holding other factors constant.
2. Recognize that demand is typically represented by a demand schedule or demand curve, which shows various quantities demanded at different prices.
3. Distinguish demand from supply, which relates to quantities firms are willing to sell, and from total revenue, which is price multiplied by quantity sold.
4. Note that demand depends on factors like consumer income, tastes, and prices of related goods, so it is not just the quantity purchased at a single price without considering these factors.
5. Conclude that the best definition of demand is: 'A schedule or curve showing the quantities of a good that consumers are willing and able to buy at various prices, holding other factors constant.'