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needs and wants, Business Economics
Nathan is a successful public relations (PR) consultant, thanks to an outgoing personality and sharp intelligence. At 35, he is near the height of his earnings potential, at around £100,000+per year. He started his career with a student loan of £8000. The interest on this loan was subsided by the government, but his starting salary was also low. Ten years ago, he and his partner, Tracy, wanted to buy a £75,000 house in Norwich, and this meant borrowing money of mortgage £65,000 and using Tracy’s savings of £10,000. As Nathan’s children were growing up, he received several promotions but has now left his firm to become a freelance PR consultant, and his income has greatly increased. He is developing an expensive taste for tailor-made suits, on the grounds of the image he needs to portray to clients. He is also weighing up the cost and benefits of buying a new ‘peoples carrier’ vehicle for his family.
On his leaving university, Nathan changed from spending money on parties to buying a house. His first house was very limited by what he could afford on a starting salary. As he got promotions, he could afford a wider selection of properties, more expensive holidays, clothes, and so on.
Explain whether Nathan’s habit of buying tailor-made suits is a ‘need’ or a ‘want’
Posted Date: 9/26/2012 10:55:09 AM | Location : United States
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