In understanding and analyzing "demand," we focus on how much of a product the buyers are
A) willing and wanting to buy.
B) actually buying now and in the recent past.
C) able to buy with their given income.
D) willing and able to buy.

Question

Quizplus · Accepted Answer

In economics, demand refers to the willingness and ability of buyers to purchase a product at a certain price. Option D accurately captures this definition as it states that demand is based on both a buyer's "willingness" and "ability" to buy the product. Option A only mentions "willingness" but doesn't include "ability," which is an essential component of demand. Option B only focuses on actual sales data rather than considering the broader concept of demand. Option C only considers a buyer's income and doesn't include "willingness" as a factor.

In Understanding and Analyzing "Demand," We Focus on How Much