When we know the quantity of a product that buyers wish to purchase at each possible price we know_____________?
Correct answer: A. Demand
- A. Demand
- B. Supply
- C. Excess demand
- D. Excess supply
Explanation
Demand is the quantities buyers are willing and able to purchase at different possible prices, usually represented by a demand schedule or curve. Supply instead describes sellers' planned quantities.
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About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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