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
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.