According to the Desire Satisfaction Theory, Desire Satisfaction Is

question 29

Multiple Choice

According to the desire satisfaction theory, desire satisfaction is

• A) necessary for becoming better off.
• B) sufficient for becoming better off.
• C) Both of the above
• D) None of the above

---

Definitions:

Substitution Effect

The change in consumption patterns due to a shift in relative prices, leading consumers to substitute one product for another more affordable one.

Price Change

An adjustment in the cost of a good or service, which can be an increase or decrease from its previous amount.

Perfect Complements

Goods that are always consumed together in fixed proportions, where the utility derived from one good enhances the utility derived from the other.

Income Effect

The impact on an individual's or economy's purchasing power from an increase or decrease in income, which subsequently affects the quantity demanded for goods and services.