BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -A want becomes a demand only when it is backed by the ability of purchase. Demand of a commodity refers to the desire to buy the commodity backed with the purchasing power.

Detailed explanation-2: -Explanation: A want or a need turns into a demand just when it is supported by the capacity or the ability to buy. The interest or demand of a product alludes to the craving or desire to purchase the product upheld with the buying power.

Detailed explanation-3: -Consumer buying power is how you (the consumer) decide to spend money. It’s all about your behavior. If you have $500 to spend on items each month, then that’s your consumer buying power-meaning $500 is how much money you’ll put back into the economy when you buy stuff.

Detailed explanation-4: -Expert-Verified Answer When ‘want’ is supported by purchasing power, it is called demand. Explanation: Demand is described as a combination of one’s want to have a commodity and their purchasing power. Purchasing power is defined as the ability to have enough money to purchase a commodity.

Detailed explanation-5: -CPI is one of the measures of inflation and purchasing power. It calculates the change in the weighted average of prices of consumer goods and services, and in particular, transportation, food, and medical care, at a given time. CPI can point to changes in the cost of living as well as deflation.