In Economics, the Demand for a Good Refers to the Amount

question 223

Multiple Choice

In economics, the demand for a good refers to the amount of the good people:

• A)​would like to have if the good were free.
• B)​will buy at various prices.
• C)​need to achieve a minimum standard of living.
• D)​will buy at alternative income levels.

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Definitions:

External Benefits

Positive effects of a product or a decision that are enjoyed by people other than those who decide to produce or consume the product.

Allocation of Resources

The process by which resources are distributed for the production of goods and services within an economy.

Market Equilibrium

A state in a market where the quantity demanded by consumers equals the quantity supplied by producers, leading to a stable price for the goods or services.

Production and Consumption

The processes of creating goods and services (production) and using them to satisfy needs and desires (consumption).