What economic concept is defined as the quantity of a good that consumers are willing and able to purchase?

• A. Demand
• B. Utility
• C. Elasticity
• D. Supply

Answer: (A)

Demand is the quantity of a good that consumers are willing and able to purchase at various prices over a given period. This definition captures both the desire to buy and the financial means to do so, which together determine how much people actually buy. Typically, when prices fall, the quantity demanded rises, and when prices rise, it falls, all else held constant—the law of demand. Demand can shift based on factors like income, tastes, the prices of related goods, expectations, and the number of buyers, creating a new relationship between price and quantity demanded.

Utility refers to the satisfaction or usefulness a consumer gets from a good, not how much is bought. Elasticity measures how responsive the quantity demanded is to price changes. Supply deals with how much producers are willing to offer at different prices.