Answer to Question #212536 in Microeconomics for sultan

Question

1 What is the difference Between Want and Demand? Explain it with the help of example

Answer 1

A want is a non-essential commodity for survival desired by a person who is not backed up by the economic power to purchase it. For example, if a person likes a BMW vehicle without purchasing power, it is termed a want.

On the other hand, demand is the amount of commodity people are willing and able to buy at all possible prices and in a given period. If a person has the economic power and wants to buy a BMW, then demand for BMW increases.

Therefore, wants can be turned into demand in the event the individuals acquire the purchasing power.