In microeconomics, what does a consumer's demand for a good represent?

• A. The total spending by all consumers on the good at a single price
• B. The quantities of the good the consumer is willing and able to buy at different prices over a given period, holding other factors constant
• C. The quantity of the good that firms are willing and able to sell at different prices
• D. The maximum price the consumer is willing to pay for the first unit of the good only

Answer: (B)

Verified step by step guidance

1. Understand that a consumer's demand for a good refers to the relationship between the price of the good and the quantity the consumer is willing and able to purchase.
2. Recognize that demand is not just a single quantity at one price, but a schedule or curve showing quantities demanded at various prices over a given time period.
3. Note that demand assumes other factors (like income, tastes, prices of other goods) are held constant, which is known as the ceteris paribus condition.
4. Distinguish demand from total market spending, which aggregates all consumers' purchases, and from supply, which relates to firms' willingness to sell.
5. Conclude that consumer demand specifically represents the quantities of the good the consumer is willing and able to buy at different prices, holding other factors constant.