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Question
Distinguish between Desire and Demand.
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Solution
| Sr. No. | Desire | Demand |
| 1. | Desire means an urge to have something. | Demand means a desire which is backed by willingness and ability to pay. |
| 2. | Desire is a part of demand. | Demand includes desire. |
| 3. | Desire is not per unit of time. | Demand is always per unit of time. |
| 4. | There is no relation between desire and price. | There is an inverse relationship between demand and price. |
| 5. | Reference to time and price is not necessary to express desire. | Reference to time and price is necessary to express demand. |
| 6. | E.g., the desire of a poor person to go on a vacation to Switzerland.. | E.g., the demand of a popular movie actor to buy an “Audi” car. |
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