Which term describes the willingness and ability of consumers to purchase goods and services?

The term that describes the willingness and ability of consumers to purchase goods and services is demand. Demand reflects consumers' purchasing intentions at various price levels and is fundamental to understanding market behavior. When demand increases, it indicates that consumers are not only willing to buy more but also have the means to do so, often driven by factors such as income levels, preferences, and the prices of substitutes or complements.

Knowing this helps clarify why other terms do not fit as well. Supply refers to the amount of goods and services that producers are willing and able to sell, which focuses on the producer's side of the market. Equilibrium pertains to the point where supply equals demand, representing a balance in the market but not directly addressing consumers' willingness and ability to purchase. Scarcity describes the fundamental economic problem of limited resources versus unlimited wants, rather than the specific behavior of consumers in purchasing goods and services. Thus, demand is the most accurate term in the context of consumer behavior in economics.