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Give Reason Or Explain the Following Statement. All Desires Are Not Demand. - Economics

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ConceptElasticity of Demand

Question

Give reason or explain the following statement.

All desires are not demand.

Solution

Desires refer to those wishes that a human being cherishes such as to walk on the moon, to be a billionaire and to buy a Rolls-Royce. These wishes may not always be backed by enough finance to realise them. It is only when a desire is backed by sufficient purchasing power, along with the consumer’s readiness to spend on materialising the wish, that it becomes demand. Thus, until a consumer has sufficient money and he/she is willing to spend, a desire will remain a desire. Thus, we can say that all desires are not demand.

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APPEARS IN

 Micheal Vaz Solution for Micheal Vaz Class 12 Economics (2019 to Current)
Chapter 3: Demand Analysis
Exercise | Q: 2.1 | Page no. 24
Solution Give Reason Or Explain the Following Statement. All Desires Are Not Demand. Concept: Elasticity of Demand.
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