Management Notes

Reference Notes for Management

The amount of a good that buyers are willing and able to purchase at a given price

The amount of a good that buyers are willing and able to purchase at a given price

a) Law of Demand
b) Demand Schedule
c) Quantity Demanded
d) Demand Curve

The Correct Answer for the given question is option c) Quantity Demanded

Answer Explanation for Question: The amount of a good that buyers are willing and able to purchase at a given price

The amount of a good that buyers are willing and able to purchase at a given price is called Quantity Demanded. In economics, the term ‘quantity demanded’ describes how much of a given good or service consumers demand over a specific time period. It is based on the price of a good or service in a market, regardless of whether that market is balanced.

A demand curve, or simply demand, is the relationship between quantity demanded and price. Elasticity of demand describes how much the quantity demanded changes in response to price changes. Consumption of a good or service is determined by the price in a marketplace. The more a price is, the less quantity demanded, and the more a price is, the higher the quantity demanded. Assuming that non-price factors are removed from the equation, a higher price leads to a lower quantity demanded. As stated in the law of demand, the quantity demanded for a product is inversely proportional to the price of that product.

Law of demand studies the quantity demanded as a crucial factor. A good or service’s price directly influences the quantity demanded. The price of the good or service has an inverse relationship with the quantity demanded, as well as other non-price factors. A higher price leads to a lower demand for the good or service. A lower price results in a higher demand for the good or service. Thus, in most cases, the price affects the increase or decrease in the quantity demanded.

Demand for a given item is said to be dependent if 

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