Question:
Zahara is wondering how she will be able to afford her monthly TV streaming services, water bill, groceries, and cell phone bill. What economic concept concerns Zahara?
A. Economic needs
B. Economic limits
C. Economic needs and wants
D. Economic wants and limits
Answer:
C. Economic needs and wants
Understanding Needs and Wants
Consumer satisfaction is dependent on their consumption of both economic needs and wants. This is such a scenario where Zahara is in. Her satisfaction is dependent on her level of accessing economic needs and wants.
Economic needs are those things that are fundamental for human survival. You and I cannot do without economic needs; Zahara is no exception. She must consume these economic needs whether she has money or not.
In this case, her water bill and groceries are her economic needs. She cannot practically live without water and groceries.
On the other hand, economic wants are things one can live without but are desired to improve life. One can live with them but now without some hardships.
For Zahara, her monthly TV streaming service and phone bills are economic wants. They make her life easier and better in many ways.
