Answer :
Though both terms desire and demand can be used interchangeably but in economics, they both are different. If we say you desire to have a car, but you do not have enough money to buy it. Then this desire will be just a wishful thinking, it will not be called demand. And also if you have enough money but you are not willing to spend it on car, demand does not emerge. The desire becomes demand only when you are ready to spend money to buy car.
Thus demand for a commodity refers to the desire to buy a commodity backed with sufficient purchasing power and willingness to spend. In other words, demand is an effective desire, a desire accompanied by the will to purchase and the power to purchase.
No comments:
Post a Comment