In microeconomics, what does the demand schedule for a good show?

• A. The quantities of the good firms are willing and able to produce at different prices, holding input costs constant
• B. How total revenue changes as the price of the good changes, holding quantity constant
• C. The market-clearing price that equates quantity demanded and quantity supplied at each income level
• D. The quantities of the good consumers are willing and able to buy at different prices, holding other factors constant

Answer: (D)

Verified step by step guidance

1. Understand that a demand schedule is a table or list that shows the relationship between the price of a good and the quantity demanded by consumers.
2. Recognize that the demand schedule holds other factors constant (ceteris paribus), such as consumer income, tastes, and prices of related goods, to isolate the effect of price on quantity demanded.
3. Note that the demand schedule specifically focuses on the quantities that consumers are willing and able to buy, not what firms produce or supply.
4. Identify that each entry in the demand schedule pairs a specific price with the corresponding quantity demanded at that price.
5. Conclude that the demand schedule helps illustrate the law of demand, which states that, all else equal, quantity demanded decreases as price increases.