Answer :
To determine which of the given conditions corresponds to 'demand,' we need to understand what 'demand' means in economics.
Demand refers to the quantity of a good or service that consumers are willing and able to purchase at various prices during a given period of time. It involves both the desire to purchase and the ability to pay for the good or service.
Let's analyze each statement:
An individual buys a kilo of rice worth P40.00.
- Explanation: This action demonstrates demand because the individual is both willing and able to purchase the rice at the price of P40.00. The purchase transaction explicitly shows their demand for rice at that price level.
An individual is given a kilo of rice worth P40.00.
- Explanation: This situation does not directly reflect demand. While the person may still desire the rice, they did not express their demand through a purchase transaction since it was given to them for free.
An individual consumes a kilo of rice that is held for credit worth P45.00.
- Explanation: In this scenario, the individual consumes the rice on credit, indicating they are expressing demand by eventually paying for it (albeit later). However, taking credit suggests a willingness to purchase, even if they don't have the means to pay immediately.
Out of the three scenarios, the most straightforward demonstration of 'demand' is the first option, where the individual buys the rice worth P40.00. The act of buying reflects both willingness and ability to pay, fulfilling the conditions for demand in economic terms.
