Chapter 1, Problem 12AA

To determine

To Discuss: Whether ‘New Clothes’ is a need or a want.

Explanation of Solution

New clothes comes under the condition ‘WANT’ as people wish or desire to have new clothes for good looking and for good personality. Clothes can be a basic need for people but without purchasing new clothes we can survive are needs.

Therefore, New Clothes are WANT.

Economics Concept Introduction

Introduction:

WANT: Want is something people wish to desire or people wish to have. Example:

• Air Conditioner (AC)
• Car

NEED: Need occurs when people consume a particular thing for survival. Example:

• Food
• Shelter