Question on: JAMB Economics - 2024
The willingness of an individual backed up with purchasing power at a given time is
A
effective demand
B
demand
C
desire
D
utility
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Correct Option: A
Effective demand is defined as the desire for a commodity backed by the ability to pay for it.
- Desire: Represents the wish to have something but does not necessarily include the ability to pay.
- Demand: Refers to the quantity of a good or service that consumers are willing and able to purchase at various prices.
- Utility: The satisfaction or benefit derived from consuming a good or service.
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