Need/desire/want/demand
This document was uploaded by user and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this DMCA report form. Report DMCA
Overview
Download & View Need/desire/want/demand as PDF for free.
More details
- Words: 918
- Pages: 29
NEED/DESIRE/WANT/DEMAND NEED-Arousal of awareness or recognition that one has to take some action to remove a particular feeling. Something missing that requires to be obtained to remove the feeling.Eg.hunger,rest,illness etc Related with essentials of life without which one cannot live
DESIRE
Awareness of need leads to desire for satisfying it or removing it.
WANTS
Desire backed by purchasing power for satisfying it or removing it
Blueprint Skill Economics
Classify needs and wants using pictures of common items (i.e., food, cleaning products, clothes, candy, makeup).
NEED$ AND WANT$
One important idea in economics is that of needs and wants.
NEED$ AND WANT$
Needs would be defined as goods or services that are required. This would include the needs for food, clothing, shelter, health care. These are things you must have to live.
NEED$ AND WANT$
Wants are goods or services that are not necessary but that we desire or wish for.
NEED$ AND WANT$
For example, one needs clothes, but one may not needs designer clothes. One does not need toys, movies, or games. One needs food, but does not have to have steak or dessert.
NEED$ AND WANT$
Many times advertisers try to appeal to consumers in such a way that the consumers feel they need certain goods or services when in fact they only want them.
NEED$ AND WANT$
Do you need this or do you want this?
NEED$ AND WANT$
Need or want?
NEED$ AND WANT$
Need or want?
NEED$ AND WANT$
Try this need and wants activity.
Activity
Resources
Needs and Wants
Human Wants
Goods are priced because of their usefulness; Usefulness leads to the demand while scarcity leads to its supply. Therefore the interaction of demand and supply is the point where the prices of goods is determined.
Human Wants : The basis of all economic activities is the existence of human wants and the process of fulfillment of this want is where all economics activities start.
Definition of Human Want : . “Desire is the wish to have something. But ‘want’ is an effective desire for a particular thing, which can be satisfied by making an effort to acquire it.
Human Wants
Three elements that make a desire, an effective desire or a want: (i) willingness (ii) resources for fulfilling the desire and (iii) willingness to part with the resource to fulfill that desire In other words its the want-effort-satisfaction which forms the subject matter of economics
DEMAND
Quantity purchased at a given price and at a given point of time
Features of Human Wants Classification of Human Wants : necessaries, comfort and luxuries.
Features : 1. Unlimited Wants 2. Some wants are complementary 3. A single want is satiable 4. Substitutability of Wants 5. Wants are competitive 6. Wants multiply 7. Wants re-occur 8. Some wants can be postponed 9. Wants differ in urgency and intensity
Economic Significance of Human Wants
1 The material prosperity of a
country can be gauged from the number and variety of human wants normally satisfied. 2 Shows important features which are the basis of important laws in Economics – Laws of diminishing return, law of substitution, etc
Consumption
Goods and services need to be consumed in order to satisfy human wants. Consumption is registered the beginning as well as the end of all economic activities.
Utility
Utility refers to want satisfying power of a commodity.
In objective terms, utility may be defined as the “amount of satisfaction derived from a commodity or service at a particular time”.
•
Utility can be measured.
Demand Meaning and Definition of Demand According to Benham: “The demand for anything, at a given price, is the amount of it, which will be bought per unit of time, at that price.” According to Bobber, “By demand we mean the various quantities of a given commodity or service which consumers would buy in one market in a given period of time at various prices.”
Requisites: a. Desire for specific commodity. b. Sufficient resources to purchase the desired commodity. c. Willingness to spend the resources. d. Availability of the commodity at e. (i) Certain price (ii) Certain place (iii) Certain time.
Kinds of Demand 1. Market
demand 2. Individual demand 3. Income Demand-(later)
-
-
4. Cross demand Demand for substitutes or competitive goods (eg.,tea & coffee, bread and rice) Demand for complementary goods (eg., pen & ink) 5. Joint demand (same as complementary, eg., pen & ink) 6. Composite demand (eg., coal & electricity)
-
7. Direct demand (eg., ice-creams) 8. Derived demand (eg., TV & TV mechanics) 9. Competitive demand (eg., desi ghee and vegetable oils) 10.Demand of unrelated goods
Factors Determining Demand •
•
•
(i) Price of the commodity – Normally there is an inverse relationship between the price of the commodity and the quantity demanded. (Px) (ii) Income of the Consumer – Determines the purchasing power of the consumer. Generally, there is a direct relationship between the income of the consumer and demand. (Y) Qdx = f (Px, Pr ,Y , T, D)
• • • • • •
(iii) Consumer’s taste and preference (T) (iv) Price of related commodities (Pr) (v) Consumer Expectation (expected change in price) (v) Distribution of income (vi) Size and composition of population (vii) Other Factors e.g., natural calamities
DESIRE
Awareness of need leads to desire for satisfying it or removing it.
WANTS
Desire backed by purchasing power for satisfying it or removing it
Blueprint Skill Economics
Classify needs and wants using pictures of common items (i.e., food, cleaning products, clothes, candy, makeup).
NEED$ AND WANT$
One important idea in economics is that of needs and wants.
NEED$ AND WANT$
Needs would be defined as goods or services that are required. This would include the needs for food, clothing, shelter, health care. These are things you must have to live.
NEED$ AND WANT$
Wants are goods or services that are not necessary but that we desire or wish for.
NEED$ AND WANT$
For example, one needs clothes, but one may not needs designer clothes. One does not need toys, movies, or games. One needs food, but does not have to have steak or dessert.
NEED$ AND WANT$
Many times advertisers try to appeal to consumers in such a way that the consumers feel they need certain goods or services when in fact they only want them.
NEED$ AND WANT$
Do you need this or do you want this?
NEED$ AND WANT$
Need or want?
NEED$ AND WANT$
Need or want?
NEED$ AND WANT$
Try this need and wants activity.
Activity
Resources
Needs and Wants
Human Wants
Goods are priced because of their usefulness; Usefulness leads to the demand while scarcity leads to its supply. Therefore the interaction of demand and supply is the point where the prices of goods is determined.
Human Wants : The basis of all economic activities is the existence of human wants and the process of fulfillment of this want is where all economics activities start.
Definition of Human Want : . “Desire is the wish to have something. But ‘want’ is an effective desire for a particular thing, which can be satisfied by making an effort to acquire it.
Human Wants
Three elements that make a desire, an effective desire or a want: (i) willingness (ii) resources for fulfilling the desire and (iii) willingness to part with the resource to fulfill that desire In other words its the want-effort-satisfaction which forms the subject matter of economics
DEMAND
Quantity purchased at a given price and at a given point of time
Features of Human Wants Classification of Human Wants : necessaries, comfort and luxuries.
Features : 1. Unlimited Wants 2. Some wants are complementary 3. A single want is satiable 4. Substitutability of Wants 5. Wants are competitive 6. Wants multiply 7. Wants re-occur 8. Some wants can be postponed 9. Wants differ in urgency and intensity
Economic Significance of Human Wants
1 The material prosperity of a
country can be gauged from the number and variety of human wants normally satisfied. 2 Shows important features which are the basis of important laws in Economics – Laws of diminishing return, law of substitution, etc
Consumption
Goods and services need to be consumed in order to satisfy human wants. Consumption is registered the beginning as well as the end of all economic activities.
Utility
Utility refers to want satisfying power of a commodity.
In objective terms, utility may be defined as the “amount of satisfaction derived from a commodity or service at a particular time”.
•
Utility can be measured.
Demand Meaning and Definition of Demand According to Benham: “The demand for anything, at a given price, is the amount of it, which will be bought per unit of time, at that price.” According to Bobber, “By demand we mean the various quantities of a given commodity or service which consumers would buy in one market in a given period of time at various prices.”
Requisites: a. Desire for specific commodity. b. Sufficient resources to purchase the desired commodity. c. Willingness to spend the resources. d. Availability of the commodity at e. (i) Certain price (ii) Certain place (iii) Certain time.
Kinds of Demand 1. Market
demand 2. Individual demand 3. Income Demand-(later)
-
-
4. Cross demand Demand for substitutes or competitive goods (eg.,tea & coffee, bread and rice) Demand for complementary goods (eg., pen & ink) 5. Joint demand (same as complementary, eg., pen & ink) 6. Composite demand (eg., coal & electricity)
-
7. Direct demand (eg., ice-creams) 8. Derived demand (eg., TV & TV mechanics) 9. Competitive demand (eg., desi ghee and vegetable oils) 10.Demand of unrelated goods
Factors Determining Demand •
•
•
(i) Price of the commodity – Normally there is an inverse relationship between the price of the commodity and the quantity demanded. (Px) (ii) Income of the Consumer – Determines the purchasing power of the consumer. Generally, there is a direct relationship between the income of the consumer and demand. (Y) Qdx = f (Px, Pr ,Y , T, D)
• • • • • •
(iii) Consumer’s taste and preference (T) (iv) Price of related commodities (Pr) (v) Consumer Expectation (expected change in price) (v) Distribution of income (vi) Size and composition of population (vii) Other Factors e.g., natural calamities
