Final answer:
The amount of goods and services consumers want is called demand, which is based on their needs, wants, and ability to pay.
Step-by-step explanation:
The amount of goods and services consumers want is called demand. Demand refers to how much (quantity) of a product or service is desired by buyers and is the amount people are willing to buy at a certain price. Economists describe the relationship between price and quantity demanded as the demand relationship, which is crucial in understanding how markets operate. The concept of demand is based on both the needs and wants of consumers, and also their ability to pay. If individuals cannot afford a good or service, they have no effective demand.
For example, when the price of a gallon of gasoline increases, consumers may seek to reduce their consumption due to the cost, which demonstrates the law of demand. This law states there is an inverse relationship between price and quantity demanded, assuming that all other factors affecting demand remain constant.