In microeconomics, a demand schedule is best described as which of the following?

• A. A graph showing the quantity of a good producers are willing and able to sell at various prices during a given time period
• B. A list of the marginal costs of producing each additional unit of a good
• C. A table listing the different combinations of two goods a consumer can purchase given income and prices (a budget constraint)
• D. A table showing the quantities of a good consumers are willing and able to buy at various prices during a given time period, holding other factors constant

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the concept of a demand schedule. It is a table that shows the relationship between the price of a good and the quantity demanded by consumers over a specific time period, assuming all other factors remain constant.
2. Step 2: Recognize that the demand schedule focuses on consumer behavior, specifically how much of a good consumers are willing and able to purchase at different prices.
3. Step 3: Differentiate the demand schedule from other concepts: it is not about producers' willingness to sell (which relates to supply), nor about marginal costs (which relate to production costs), nor about budget constraints (which show combinations of goods a consumer can buy).
4. Step 4: Identify that the correct description of a demand schedule is a table listing quantities demanded at various prices, holding other factors constant (ceteris paribus).
5. Step 5: Conclude that the demand schedule is a fundamental tool in microeconomics to analyze how price changes affect consumer purchasing decisions.