NEED,DESIRES,WANTS, & DEMAND

 

DEMAND ANALYSIS

 Learning Contents:                                                            

·         Concept of Need, Desire, and Wants

·         Concept of Demand

 

Needs

Needs are the basic requirements of any person at any particular time or it is something that is needed to survive. For e.g., every person has a need for food, water, air, shelter, education, etc.

 


Desire

It is simply a wish to have something (commodity, service, etc.) irrespective of the fact whether one can buy it or not. It considers the fact of affordability. For e.g. one may desire to wear Rolex watches without having the ability to pay. Another example is that Parents wish to send their children in some highly reputed school without knowing their ability to pay the fees or not.

 

Wants

These are the specific desires supported by the consumer’s ability to pay without his willingness to spend. For example, a consumer wishes to buy iPhone having his ability to pay but unwilling to spend money on it.

 

Demand

Demand refers to the willingness and ability of a consumer to purchase a good or service. It refers to the amount of some goods and services that consumers are willing and able to buy at a given price in a given period of time. Continuing the previous example- If a consumer is financially strong enough and allows himself to buy iPhone, it means his need/want is transformed into a demand.

 

 

Quick Summary of Desire, Want, & Demand.



Let’s try some questions!

Choose the Correct Answer

 1. Which of the following can be categorized as a need?

a. Car  

b. Cell phone

c. Water

d. Watch

2. Which of the following can be categorized as a want?

a. Food

b. Clothing

c. Shelter

d. Car

3. What is a want?


a. A person

b. A good

c. something good to have but not essential for survival

d. something that is needed to live

4. What is a need?

a. something that is needed to live

b. something good to have

c. Ice cream

d. None of above

5. Which of the following is never fulfilled?

a. Needs

b. Wants

c. Needs and Wants

d. Both needs & wants can be fulfilled.

6. _____________ are wants for specific products backed by an ability to pay.

a. Demands

b. Needs

c. Desires

d. Wants

Answer Key


1.c

2.d

3.c

4.a

5.b

6. a

 

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