Which of the following best describes demand in microeconomics?

• A. The price at which a good or service is sold in the market
• B. The quantity of a good or service that consumers are willing and able to purchase at various prices
• C. The relationship between input costs and output levels
• D. The total amount of goods produced by firms in a market

Answer: (B)

Verified step by step guidance

1. Understand that in microeconomics, demand refers to consumer behavior regarding goods and services.
2. Recall that demand is not just about a single price or quantity, but the relationship between price and quantity demanded.
3. Recognize that demand shows how much of a good or service consumers are willing and able to buy at different prices, reflecting their preferences and purchasing power.
4. Differentiate demand from related concepts: price is a single point, supply relates to production, and total output is about quantity produced, not consumer willingness.
5. Conclude that the best description of demand is: 'The quantity of a good or service that consumers are willing and able to purchase at various prices.'