Are those products or services that are desired by humans and will be purchased if money is available?

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SOME ECONOMIC RELATIONSHIPS

Consumer and Producer Goods and Services

 Consumer goods and services are those products or services that are

directly used by people to satisfy their wants. (Food, clothing, homes,

cars, appliances, medical services, etc)

 Producer goods and services are used to produce consumer goods and

services or other producer goods. (Machine tools, factory buildings,

buses, etc.).

Producer goods and services are intermediate step or serve as a mean

to satisfy human wants. The amount of producer goods needed is

determined indirectly by the amount of consumer goods or services that

are demanded by people.

Necessities and Luxuries

 Necessities are those products or services that are required to support

human life and activities, that will be purchased in somewhat the same

quantity even though the price varies considerably.

 Luxuries are those products or services that are desired by human

and will be purchased if money available after the required necessities

have been obtained.

Demand

Demand is the quantity of a certain commodity that is bought at a certain

price at a given place and time. Demand refers to how much (quantity) of

a product or service is desired by buyers. The quantity demanded is the

amount of a certain product people are willing to buy at a certain price.