In microeconomics, consumer demand is best defined as which of the following?

• A. The relationship between a consumer's income and the price of a good, regardless of preferences.
• B. The quantity of a good that sellers are willing and able to produce at various prices over a given period.
• C. The minimum price a consumer must pay to obtain a good in a competitive market.
• D. The schedule or relationship showing the quantities of a good a consumer is willing and able to buy at various prices over a given period, holding other factors constant.

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the concept of consumer demand in microeconomics. Consumer demand refers to the relationship between the price of a good and the quantity that a consumer is willing and able to purchase over a specific period, assuming other factors remain constant.
2. Step 2: Differentiate consumer demand from related concepts such as supply, which is about the quantity sellers are willing to produce, and price, which is the amount paid for a good.
3. Step 3: Recognize that consumer demand is often represented as a demand schedule or demand curve, which shows how quantity demanded varies with price.
4. Step 4: Note that consumer demand depends on factors like price, income, and preferences, but the demand curve isolates the effect of price by holding other factors constant (ceteris paribus).
5. Step 5: Conclude that the best definition of consumer demand is the schedule or relationship showing the quantities of a good a consumer is willing and able to buy at various prices over a given period, holding other factors constant.