What term describes the amount of goods that customers are willing and able to buy at each price level, with demand generally falling as price rises?

What term describes the amount of goods that customers are willing and able to buy at each price level, with demand generally falling as price rises?

• A. Supply
• B. Demand
• C. Market size
• D. Price elasticity

Answer: (B)

Demand describes the quantity buyers are willing and able to purchase at each price level, and it generally falls as price rises. This reflects the law of demand: higher prices reduce purchasing power and encourage choosing substitutes, so fewer units are bought. Demand is distinct from supply (which is how much producers are willing to offer at different prices), market size (the overall scale of the potential market), and price elasticity (how strongly quantity demanded responds to price changes).

Demand describes the quantity buyers are willing and able to purchase at each price level, and it generally falls as price rises. This reflects the law of demand: higher prices reduce purchasing power and encourage choosing substitutes, so fewer units are bought. Demand is distinct from supply (which is how much producers are willing to offer at different prices), market size (the overall scale of the potential market), and price elasticity (how strongly quantity demanded responds to price changes).