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GCE Economics 1990 Question 5

Question 5

Theory of Demand

Demand in Economics is synonymous with

  1. A.needs
  2. B.wants of the consumers
  3. C.all goods demanded in the market
  4. D.wants supported with ability to pay
  5. E.all consumer goods.
Show the answer and explanation

Answer: D (wants supported with ability to pay)

Explanation

Effective demand is the desire for a good backed by the ability and willingness to pay for it.