Desire to Buy, Willingness to Buy, Capacity to buy are the three conditions necessary for
Effective demand combines a desire for a good with willingness and purchasing power. Desire without the ability to pay does not constitute effective demand, and elasticity…
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Desire to Buy, Willingness to Buy, Capacity to buy are the three conditions necessary for
Answer and explanation
Correct answer A
Effective demand combines a desire for a good with willingness and purchasing power. Desire without the ability to pay does not constitute effective demand, and elasticity instead concerns how demand responds to a change.
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Andhra Pradesh SET (APSET)