In microeconomics, which statement best defines demand for a good?

• A. Demand is the quantities of a good that firms are willing and able to sell at different prices over a given period of time.
• B. Demand is the maximum price a consumer would pay for one unit of a good, regardless of how many units are purchased.
• C. Demand is the quantities of a good that consumers are willing and able to buy at different prices over a given period of time, holding other factors constant.
• D. Demand is the single quantity of a good that consumers buy at one fixed price, regardless of income or preferences.

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the concept of demand in microeconomics. Demand refers to the relationship between the price of a good and the quantity that consumers are willing and able to purchase over a specific period of time.
2. Step 2: Recognize that demand is not about the quantity firms want to sell (which is supply), but about consumers' behavior and choices at various prices.
3. Step 3: Note that demand involves multiple quantities at different prices, not just a single quantity at one price. This relationship is often represented by a demand curve.
4. Step 4: Remember that demand assumes other factors (like consumer income, preferences, prices of related goods) are held constant, which is known as the ceteris paribus condition.
5. Step 5: Conclude that the best definition of demand is: the quantities of a good that consumers are willing and able to buy at different prices over a given period of time, holding other factors constant.