What is demand?

What is demand?

• A. Desire to buy goods
• B. Quantity supplied
• C. Price of goods
• D. Availability of goods

Answer: (A)

Demand is the willingness and ability of buyers to purchase goods or services at various prices over a given period. The choice that describes desire to buy goods best captures this idea, because demand involves wanting to purchase along with having the means to pay. The other options point to quantity supplied (a supply concept), the price of goods (a condition that influences demand but is not demand itself), and the availability of goods (which affects whether purchases can occur but isn’t demand).

Demand is the willingness and ability of buyers to purchase goods or services at various prices over a given period. The choice that describes desire to buy goods best captures this idea, because demand involves wanting to purchase along with having the means to pay. The other options point to quantity supplied (a supply concept), the price of goods (a condition that influences demand but is not demand itself), and the availability of goods (which affects whether purchases can occur but isn’t demand).