Define "market demand."

Market demand refers to the total quantity of a product that consumers are willing and able to purchase at different price levels in a given market during a specified period. It reflects consumer preferences and behaviors regarding a product, considering factors such as price, income levels, tastes, and the availability of substitutes.

This concept is crucial because understanding market demand helps businesses define pricing strategies, forecast sales, and evaluate market trends. The willingness to purchase is a key component, as it signifies that consumers not only desire the product but also have the means to make the purchase.

Other options do not accurately capture the essence of market demand: one option discusses marketing strategies, which are tactics businesses use to promote their products; another addresses legal requirements, which pertain to regulations that govern business operations; and the last refers to total revenue, which measures the financial outcome of sales rather than the willingness and ability of consumers to buy products.