The willingness of an individual backed up with purchasing power at a given time is

Source: JAMB · 2024

The willingness of an individual backed up with purchasing power at a given time is

  1. demand
  2. desire
  3. effective demand ✓
  4. utility
Explanation

Effective demand combines wanting something with the money to buy it. You must have both willingness and ability to pay.

Desire is just wanting something. Demand without money is not effective demand in economics.

A wish becomes effective demand only when you can actually afford to buy the item.

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