What is the primary difference between needs and wants?

• Needs are essential for survival; wants are desires.
• Needs are unlimited; wants are limited.
• Needs are always expensive; wants are affordable.
• Needs are created by advertising; wants are not.

Which of the following is a "want" rather than a "need"?

• Food
• Water
• Designer clothes
• Shelter

Why are wants considered unlimited?

• People can never satisfy all their desires.
• Advertising controls consumer behavior.
• There are limited resources to fulfill wants.
• Wants only apply to luxury goods.

How are wants influenced by activities?

• Wants remain constant regardless of activities.
• Wants change based on what people are doing.
• Activities have no impact on wants.
• Wants are only linked to leisure activities.

Which of the following scenarios demonstrates a want in relation to an activity?

• Basic daily tasks
• Social gatherings
• Studying
• Sleeping

What does "gradations of consumer demand" mean?

• Consumers only buy necessary goods.
• Demand varies in levels of importance or urgency.
• Demand is always fixed and predictable.
• Only wealthy people experience demand gradations.

Which product demonstrates a high gradation of demand?

• Electricity
• Designer handbags
• Video games
• Jewelry

What does elasticity of wants refer to?

• The change in wants based on price changes.
• The need for flexible goods.
• The ability to satisfy unlimited wants.
• The increase in wants over time.

How are goods categorized in terms of gradation of consumer demand?

• Essential and luxury
• Local and imported
• Durable and non-durable
• Necessary and unnecessary

If a good has highly elastic demand, what does this mean?

• A small price change will cause a large change in demand.
• The good is not affected by price changes.
• The good is a necessity.
• Demand decreases regardless of price changes.