In microeconomics, what two qualities characterize demand for a good?

• A. Income and population
• B. Price and quantity supplied
• C. Need and scarcity
• D. Willingness and ability to pay

Answer: (D)

Verified step by step guidance

1. Understand that demand in microeconomics refers to the quantity of a good or service that consumers are willing and able to purchase at various prices over a given period.
2. Recognize that the two key qualities that characterize demand are 'willingness to pay' and 'ability to pay.' Willingness to pay reflects the desire or preference for the good, while ability to pay reflects the consumer's financial capacity.
3. Note that other options like income and population, price and quantity supplied, or need and scarcity relate to factors influencing demand or supply but do not directly define demand itself.
4. Recall the formal definition of demand: it is not just wanting a good (need or willingness) but also having the means (ability) to purchase it at a given price.
5. Therefore, the correct characterization of demand focuses on the consumer's willingness and ability to pay for the good.