Which of the following best describes the concept of demand in microeconomics?

• A. The total amount of a good produced by firms in a market.
• B. The relationship between the price of a good and the quantity consumers are willing and able to purchase at each price, holding other factors constant.
• C. The amount of a good that consumers want to buy at a single price.
• D. The change in quantity supplied resulting from a change in price.

Answer: (B)

Verified step by step guidance

1. Understand that in microeconomics, demand refers to how much of a good consumers are willing and able to buy at various prices, not just at one price or the total produced by firms.
2. Recognize that demand is represented as a relationship or function between price and quantity demanded, often illustrated by a demand curve.
3. Note that this relationship assumes other factors (like income, tastes, prices of related goods) are held constant, which is known as the ceteris paribus condition.
4. Distinguish demand from supply concepts: demand focuses on consumers' willingness and ability to purchase, while supply relates to producers' willingness to sell.
5. Identify that the correct description of demand is the one emphasizing the relationship between price and quantity consumers are willing and able to buy at each price, holding other factors constant.