Market demand is based on the overall preferences of consumers in the market. Which term correctly completes the sentence?

• A. supply
• B. price
• C. demand
• D. equilibrium

Answer: (C)

Verified step by step guidance

1. Understand the context of the sentence: it refers to the overall preferences of consumers in the market, which directly relates to how much of a good or service consumers want to buy at different prices.
2. Recall the definition of key terms: 'supply' refers to how much producers are willing to sell, 'price' is the amount of money required to purchase a good, 'demand' is the quantity consumers want to buy at various prices, and 'equilibrium' is the point where supply equals demand.
3. Identify that the sentence is describing the concept that aggregates consumer preferences into a measurable market quantity, which is the 'demand'.
4. Confirm that 'demand' fits logically and conceptually to complete the sentence: 'Market demand is based on the overall preferences of consumers in the market.'
5. Therefore, the correct term to complete the sentence is 'demand'.