BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Utility
|
|
|
Demand
|
|
|
Consumption
|
|
|
Scarcity
|
Detailed explanation-1: -When the desire for a commodity is backed by purchasing power and willingness to spend, then it becomes an effective demand. Hence, demand always means effective demand.
Detailed explanation-2: -“Demand means effective desire or want for a commodity, which is backed by the ability (i.e., money or purchasing power) and willingness to pay for it.” That is one should have the desire and capacity to buy a commodity and should be willing to pay its price to constitute effective demand for that commodity.
Detailed explanation-3: -Demand is a principle of economics that captures the consumer’s desire to buy the product or service. The demand is calculated as the price the consumers are willing to pay for the product or service.
Detailed explanation-4: -Demand is equal to desire plus ability to pay plus will to spend.
Detailed explanation-5: -The willingness and the ability to buy commodity backed with sufficient purchasing power refers to demand.