How is demand defined in relation to supply?

Demand is defined as the quantity of goods consumers are willing to buy at various price levels. This definition emphasizes the behavior of consumers in the market and their purchasing power relative to the prices of goods. Demand reflects the needs and preferences of consumers, showcasing their willingness and ability to purchase products when prices change.

Understanding demand is fundamental for analyzing how it interacts with supply, which refers to the quantities of goods that producers are willing to sell at various price points. The interplay between demand and supply determines the market equilibrium, where the quantity demanded by consumers matches the quantity supplied by producers.

By recognizing that demand is specifically about consumer behavior, it becomes clear why the other options do not accurately define demand. The quantity of goods producers are willing to buy relates to supply, not demand. The total number of goods produced pertains more to production capacity and supply rather than consumer intent. Lastly, while price points play a critical role in determining demand, they do not define demand itself; demand is centered on the quantities that consumers are prepared to purchase at those price points.