ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -“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-2: -Demand refers to the consumer’s desire and willingness to buy a product or service at a given period or over time. Consumers must also have the ability to pay for something they want or need as determined by their disposable income budget.

Detailed explanation-3: -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. Q. refers to a desire backed by the ability to pay and willingness to buy that commodity.

Detailed explanation-4: -Desire refers to the ambition or aspiration of a person. Want is a strong feeling, craving or demand of a person to possess some things. Demand refers to the claim, interest, order or ability to purchase that commodity at a given price.

Detailed explanation-5: -According to Penson – “Demand implies three things-(i) Desire to possess a thing, (ii) Means of purchasing it; and (iii) Willingness to use those means for purchasing it.”