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Economic Theory

2. Every want is satiable: wants in general are unlimited. But a single
or a particular want is satiable. We can completely satisfy a single want. A
man is hungry and he requires food. By spending some money on food, he
can get food and satisfy his hunger.

3. Wants are competitive: Wants are unlimited. The resources and
time at our disposal are much limited and we cannot satisfy all wants. So

the wants will be competing to get satisfied. One set of wants may be
competing with other set of wants to get preference of choosing first. Of
course, a consumer will choose the more urgent wants and distribute his
income on several goods in such a manner as to get maximum satisfaction.

4. Wants are complementary: Some wants are complementary in
nature, i.e. they have to be satisfied together. Though the want may be a
single one, we require many commodities and services to satisfy that want.

Want for ‘writing’ includes want for paper, pen and ink. In some cases,
wants may be both ‘competitive’ and ‘complementary’. For example, labor
and machinery. Labor can be displaced by machinery. Machines cannot
work without the help of labor.

5. Wants are alternative: A want can be satisfied by two or more
goods or by two or more methods. A want for hot drink may be satisfied
by coffee or tea. We may go by ‘bus’ or ‘train’ or by ‘taxi’ to reach our

destination. Thus, a want can be satisfied by many ways. These alternative
goods or methods are called ‘substitutes’.
6. Wants vary with time, place and person: Wants are not static in
character. They are changing with time, place and person. We require hot

drinks in winter and cool drinks in summer. People of England require
warm woolen suits and rain coats. People of India require only cotton. The

wants of our forefathers were different from the wants of the present
generation. So, wants vary with generation, culture, society, geographic
location and the extent of economic development.
7. Some wants recur again: Some wants are felt again and again. The

want for food can be satisfied by eating food. Again the same want appear
after a few hours. That is why we say wants are recurring in nature.
8. Wants are influenced by advertisements: Effective advertisements

through films, journals, radio and TV will create new wants and the
existing wants get modified. Through advertisements and clever
salesmanship, businessmen create tastes for their products.
9. Wants become habits and customs: If a particular want is satisfied

repeatedly by a commodity, then it becomes a habit. Example: drinking
coffee and tea. Wants become habits and habits are responsible for wants.

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