The quantity of a good or service that consumers are both willing and able to buy at various prices is called what?

• A. Supply
• B. Elasticity
• C. Demand
• D. Law of Demand

Answer: (C)

Demand is the quantity of a good or service that consumers are willing and able to buy at different prices, holding other factors constant. It captures both want and purchasing power. When prices fall, more people can afford the good, so quantity demanded tends to rise; when prices rise, quantity demanded tends to fall. This creates the typical downward-sloping relationship between price and quantity demanded. The other terms describe different ideas: supply is what producers are willing to offer at various prices, elasticity is how responsive quantity changes to price, and the law of demand is the principle that price and quantity demanded move in opposite directions, not the label for the entire relationship.