In microeconomics, what is a demand (or demand schedule) for a good?

• A. A relationship showing the quantities of a good that consumers are willing and able to buy at various prices, holding other factors constant.
• B. A relationship showing the quantities of a good that producers are willing and able to sell at various prices, holding other factors constant.
• C. The maximum price consumers will pay for the last unit of a good, regardless of how many units are purchased.
• D. The single quantity of a good that consumers plan to buy at all possible income levels, regardless of price.

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of demand in microeconomics. Demand refers to the relationship between the price of a good and the quantity that consumers are willing and able to purchase, assuming other factors remain constant (ceteris paribus).
2. Step 2: Recognize that a demand schedule is a tabular representation of this relationship, showing different quantities demanded at various prices.
3. Step 3: Differentiate demand from supply. While demand focuses on consumers' willingness and ability to buy, supply relates to producers' willingness and ability to sell at different prices.
4. Step 4: Note that the maximum price consumers are willing to pay for the last unit is related to the concept of marginal utility or willingness to pay, but it does not define the entire demand schedule.
5. Step 5: Understand that demand varies with price and is not a single fixed quantity across all income levels; income and other factors can shift the demand curve but the demand schedule itself shows quantities at different prices holding other factors constant.