A schedule of how much consumers are willing and able to buy at all possible prices during some time period is called what?

• A. Consumption
• B. Demand
• C. Market
• D. Supply

Answer: (B)

The idea being tested is how price relates to the amount consumers are willing and able to buy. A demand schedule shows this relationship by listing the quantity demanded at every possible price over a specific period. This is different from actual purchases (consumption), which are what people actually buy, and from supply, which is the quantity producers are willing to sell at various prices. It’s also distinct from a market, which is the arena where buyers and sellers interact. The demand schedule underpins the law of demand: when price falls (holding everything else constant), the quantity demanded typically rises, creating the downward-sloping demand curve. Changes in determinants like income, prices of related goods, tastes, expectations, and the number of buyers shift the schedule, not just move along it.