What is demand in economics?

Question

Demand is:

Answer choices

1. People's desire to possess certain goods.
2. Needs backed by buyers' purchasing power.
3. The population's need for a particular good.
4. Income associated with savings.

Answer

Needs backed by buyers' purchasing power — option 2.

Explanation

Demand requires both the desire to buy a good and the ability to pay for it, rather than need alone.