Which of the following best describes the quantity demanded in the context of the demand curve?

• A. The total amount of a good that sellers are willing to offer at any price
• B. The maximum price buyers are willing to pay for a good
• C. The relationship between the price of a good and the cost of production
• D. The amount of a good that buyers are willing and able to purchase at a given price

Answer: (D)

Verified step by step guidance

1. Understand the concept of quantity demanded: it refers to the specific amount of a good that buyers are willing and able to purchase at a particular price, holding other factors constant.
2. Recognize that the demand curve graphically represents the relationship between the price of a good and the quantity demanded, showing how quantity demanded changes as price changes.
3. Distinguish quantity demanded from other concepts: it is not about sellers' willingness to offer goods (which relates to quantity supplied), nor about the maximum price buyers are willing to pay (which relates to reservation price or willingness to pay), nor about production costs.
4. Focus on the definition that quantity demanded is a point on the demand curve corresponding to a specific price, indicating how much buyers will purchase at that price.
5. Conclude that the best description of quantity demanded is 'the amount of a good that buyers are willing and able to purchase at a given price.'