Which of the following best describes the concept of demand in microeconomics?

• A. The amount of money consumers spend on goods and services.
• B. The quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.
• C. The total amount of goods produced by firms in a market.
• D. The price at which a good or service is sold in the market.

Answer: (B)

Verified step by step guidance

1. Understand that in microeconomics, 'demand' refers to the relationship between the price of a good or service and the quantity that consumers are willing and able to buy.
2. Recognize that demand is not just about how much money is spent or the total production, but specifically about the quantities consumers want at different prices.
3. Note that demand is typically represented by a demand curve, which shows the quantity demanded at various price points over a given time period.
4. Distinguish demand from related concepts: 'total amount produced' relates to supply, and 'price at which a good is sold' refers to market price, not demand itself.
5. Therefore, the best description of demand is the quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.