The figure given below represents the PPC in two nations

Question

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4
 
-The amount of a product that people are willing and able to purchase at a specific price is referred to as the:
A)demand. 
B)quantity demanded. 
C)law of demand. 
D)consumption function. 
E)purchasing power.

Quizplus · Accepted Answer

The amount of a product that people are willing and able to purchase at a specific price is referred to as the quantity demanded. Demand refers to the entire curve or relationship between price and quantity demanded, whereas quantity demanded refers to a specific quantity at a specific price. The law of demand states that as the price of a good or service increases, the quantity demanded of that good or service will decrease, all other things being equal. The consumption function and purchasing power are also related to demand, but they do not specifically refer to the quantity of a product demanded at a certain price.