What is an effective need of demand, Managerial Economics

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What is an effective need of demand

1.  An Effective Need: Effective need demands that there must be a need supported by the capacity and readiness to shell out. Henceforth there are three basics of an effective need:
a. The individual must have a need to attain a specific product.
b. He should have enough funds to pay for that product.  
c. He must be willing to part with these resources for that commodity.


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