Demand Schedules Reveal Willingness and Ability to Pay

Steps:

• Examine the table: At $10, Y demands 1000 units vs. Z's 200; at$15, Y demands 600 vs. Z's 100; at $20, Y demands 400 vs. Z's 0.
• Compare quantities: Area Y consistently demands more at every price level.
• Identify the pattern: Y's demand schedule lies to the right of Z's, indicating stronger overall demand.
• Conclude: This reflects differences in consumer behavior, not population or income directly.

Why A is correct:

• In economics, quantity demanded at each price shows consumers' willingness and ability to pay; Y's higher quantities confirm greater willingness and ability for good X.

Why the others are wrong:

• B: Higher demand in Y could stem from preferences or needs, not necessarily greater wealth.
• C: The table shows total demand, not population size; Y could have fewer but more eager consumers.
• D: "More people who want" assumes quantity reflects desire count, but it measures total units demanded, not individual wants.

Final answer: A