__________ are human wants that are backed by buying power.
Demands are human wants that are backed by buying power. These are described as the buyers wants to buy while they have the buying power. It includes everything either it have the basic necessities or includes the luxury items. These demands totally based on the buying power of consumers. Buying power can be described as while a consumer want to purchase something either it lies under basic needs items or luxury items.
For that purpose, there are sufficient funds available to make that purchase. For example, there is a consumer who wants to buy a car for its family. But it doesn’t have the sufficient funds to purchase that car. In this case, it is the only consumer’s wants and does not fulfill the criteria of demands definition. On the other hand, when consumers want to purchase a car and have sufficient funds for that purpose it become its demand.
In the case of basic necessities mostly peoples wants becomes their demands. This is why; they have the sufficient funds to purchase those items. For that purpose, there are sufficient funds available to make that purchase. Economy of a country plays a vital role to fulfill demand of people. In a growing economy, people have more buying to purchase products and services.
While on the other hand, in a declining economy, people have less buying power. In growing economy people have more resources due to the growth in per ca-pita income are higher. Inflation rate slow, it means currency have more value against commodities. In growing economy, circulation of money is higher due to which every human has enough resources to spend. That is why economy of a country is very important.