Moderate

Need and demand________________?

Correct answer: A. are unrelated concepts

  • A. are unrelated concepts
  • B. amount to the same thing
  • C. are closely related to price
  • D. are closely related to supply

Explanation

A need is a want or requirement, whereas demand requires both willingness and the purchasing power to buy a good. They are therefore not the same concept, although the word “unrelated” is technically stronger than necessary.

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About Microeconomics

Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.

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