Which economic concept describes consumers' desire to purchase goods?

• A. Demand
• B. Supply
• C. Equilibrium
• D. Production

Answer: (A)

Describing consumers' desire to purchase goods is demand. Demand captures not just a wish to buy, but the quantity of a good that people are willing and able to buy at various prices. The law of demand explains the pattern: when price falls, quantity demanded tends to rise; when price rises, quantity demanded tends to fall, which creates a downward-sloping demand curve. Demand can shift when non-price factors change how much people want at every price, such as income (for a normal good, higher income increases demand), prices of related goods (substitutes and complements), tastes, expectations about future prices, and the number of buyers. For example, if coffee becomes more popular, the overall demand for coffee increases at every price. This concept contrasts with supply, which concerns how much producers are willing to offer at different prices; equilibrium is the point where supply and demand meet; and production refers to the actual creation of goods.