Which of the following best defines demand in microeconomics?

• A. The price at which a good or service is sold in the market.
• B. The relationship between the cost of production and the selling price.
• C. The total amount of a good produced by firms in a market.
• D. The quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.

Answer: (D)

Verified step by step guidance

1. Understand that in microeconomics, 'demand' refers to consumer behavior rather than production or pricing alone.
2. Recall that demand is not just a single quantity or price, but a relationship showing how much of a good or service consumers want to buy at different prices.
3. Recognize that demand involves both willingness and ability to purchase, meaning consumers must want the good and have the means to buy it.
4. Note that demand is typically represented as a demand curve, which plots quantity demanded against various prices over a specific time period.
5. Therefore, the best definition of demand is: the quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.