In microeconomics, what does “consumer demand” refer to?

• A. The marginal cost of producing an additional unit of output
• B. The total dollar revenue a firm earns from selling its output, equal to $P\times Q$
• C. The quantities of a good or service that consumers are willing and able to buy at different prices over a given period of time, holding other factors constant
• D. The minimum price producers must receive to be willing to supply each quantity of a good over a given period of time

Answer: (C)

Verified step by step guidance

1. Understand that 'consumer demand' in microeconomics refers to the relationship between the price of a good or service and the quantity that consumers are willing and able to purchase over a specific period of time.
2. Recognize that consumer demand is typically represented by a demand curve, which shows how quantity demanded changes as price changes, holding other factors constant (ceteris paribus).
3. Differentiate consumer demand from other concepts such as marginal cost (which relates to production costs), total revenue (which is price multiplied by quantity sold), and supply (which relates to producers' willingness to sell).
4. Note that consumer demand focuses on the behavior and preferences of consumers, specifically their willingness and ability to buy various quantities at different prices.
5. Summarize that consumer demand is best described as the quantities of a good or service that consumers are willing and able to buy at different prices over a given period of time, holding other factors constant.