In the context of market equilibrium, what is the term used to describe a group of buyers or sellers within the total market that shares similar characteristics or behaviors?

• A. Market surplus
• B. Market equilibrium
• C. Market demand
• D. Market segment

Answer: (D)

Verified step by step guidance

1. Understand that in microeconomics, the total market consists of all buyers and sellers for a particular good or service.
2. Recognize that within this total market, groups of buyers or sellers can be categorized based on shared characteristics or behaviors, such as preferences, income levels, or purchasing habits.
3. Identify that the term used to describe such a subgroup within the total market is called a 'market segment'.
4. Differentiate this from other terms: 'market surplus' refers to excess supply, 'market equilibrium' is the point where supply equals demand, and 'market demand' is the total quantity demanded by all buyers.
5. Conclude that the correct term for a subgroup sharing similar traits within the market is 'market segment'.