What defines demand in economic terms?

Demand in economic terms is defined as the quantity of a product that consumers are both willing and able to purchase at various prices over a certain period of time. This concept emphasizes not just the desire to buy but also the financial capacity to make the purchase, which distinguishes demand from mere wants. It reflects the relationship between price and quantity demanded, forming the basis for the demand curve in microeconomics.

Focusing on the other choices, the amount of a product sold at retail pertains more to sales data rather than demand itself, which encompasses potential consumer behavior. The total supply available in the market relates to what producers are willing to sell, not the consumers’ willingness or ability to buy. Lastly, consumer preferences are important in understanding demand shifts but do not define the concept of demand on their own; rather, they influence how much of a good will be demanded at given prices. Thus, the definition of demand relies on both the willingness and the ability to purchase goods in an economic context.