GENERAL KNOWLEDGE

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: -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. Was this answer helpful?

Detailed explanation-4: -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-5: -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.