Using a Graph to Help You,explain the Difference Between a Consumer's"want

question 84

Essay

Using a graph to help you,explain the difference between a consumer's"want" for and her "demand" for a good or service.

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Definitions:

Wages

Payments made to workers for their services, usually calculated on an hourly, daily, or piecework basis.

Rents

Payments made for the use of property or land, often reflecting the value derived from its use.

Comparative Advantage

The ability of an individual or country to produce a good or service at a lower opportunity cost than others, underpinning international trade.

Comparative Disadvantage

A situation where a country or entity is less efficient at producing goods or services compared to another country or entity.