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

Sum

Give reason or explain the following statement.

All desires are not demand.

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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 Economics HSC 12th Standard Maharashtra State Board
Chapter 3 Demand Analysis
Exercise | Q 2.1 | Page 24
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