Question 2 - MCQ Questions (1 Mark) - Chapter 2 Class 6 Economics - Needs and Wants - Economics

Last updated at April 16, 2024 by Teachoo

What is the term for the amount of something that people are willing and able to buy at a given price?

Answer:

The correct answer is (B) Demand

Let’s check all the options

Option (A) Supply - Supply is the term for the amount of something that producers are willing and able to sell at a given price. Supply is influenced by various factors such as costs, technology, taxes, subsidies, and expectations. Supply is represented by an upward-sloping curve on a graph, which shows the direct relationship between price and quantity supplied. So, this is incorrect .
Option (B) Demand - Demand is the term for the amount of something that people are willing and able to buy at a given price. Demand is influenced by various factors such as income, preferences, tastes, expectations, substitutes, and complements. Demand is represented by a downward-sloping curve on a graph, which shows the inverse relationship between price and quantity demanded. So, this is correct .
Option (C) Budget - Budget is the term for the amount of money that people have available to spend on goods and services. Budget is determined by income and savings. Budget affects demand by limiting the choices that people can make. So, this is incorrect .
Option (D) Price - Price is the term for the amount of money that people have to pay to buy a good or service. Price is determined by the interaction of demand and supply in a market. Price affects demand by influencing the willingness and ability of people to buy a good or service. So, this is incorrect .

Thus, option (B) is correct