Question

When we talk about the demand for a product, we are referring to:

a. amount buyers and sellers both want to exchange
b. quantity that consumers are willing and able to buy at the current price, all else held constant
c. quantity that consumers are willing and able to buy at a variety of different prices, all else held constant.
d. price that consumers are willing and able to pay, all else held constant

Answer 1

The demand for a product refers to how much of it consumers are willing and able to purchase at various prices, holding other factors constant. It aligns with the law of demand, where price and quantity demanded have an inverse relationship.

Step-by-step explanation:

When discussing demand for a product, we refer to the quantity that consumers are willing and able to buy at various prices, assuming that all other factors affecting demand remain constant. This concept adheres to the law of demand, which states an inverse relationship between price and quantity demanded. Specifically, as the price of a good or service rises, the quantity demanded typically falls, and as the price decreases, the quantity demanded usually increases.