Carla Mae C.

Relator
BCAED1A
Needs VS Wants
We all know that economics is a social science, which deals with production,
distribution and consumption functions. It is all about making choices regarding the
allocation of scarce resources, so as to make their best possible use and satisfy human wants
and needs. In economics, we often go through the terms needs and wants, but have you
wondered about their differences. According to Surbhi S (2017), “Needs refers to an
individual's basic requirement that must be fulfilled, in order to survive. Wants are described
as the goods and services, which an individual like to have, as a part of his caprices.”

By the term needs, we mean those requirements which are extremely necessary for a
human being to live a healthy life. They are personal, psychological, cultural and social that
are important for an organism to survive. In the past, the three basic needs of the man are
food, clothing and shelter but with the passage of time, education and healthcare also became
integral, as they improve the quality of life. If needs are not satisfied in time, it may result in
illness, inability in functioning properly or even death. Wants are defined as something that
a person would like to possess, either immediately or at a later time. Wants are the desires
that cause business activities to produce such products and services that are demanded by
the economy. They are optional, example an individual is going to survive, even if not
satisfied. Further, wants may vary from person to person and time to time.

There are some reasons why some people prefer their wants than their needs. First,
Human wants are unlimited: There is no end the human wants. When one want is satisfied,
another crops up to take its place. The never-ending cycle of wants goes on and on. Man’s
mind is so made that he is never completely satisfied. He always hankers after more and
more goods and services. There is no limit to his wants so long as he breathes. Human wants
keep on multiplying. Hence, all the wants of an individual cannot be met and they must seek
for alternatives.

Next is the trends. According to Alberto Dominguez (2018), “Either we like them or
not, trends exist. Some people get off to a greater or lesser extent their influences, while
others are so convinced of their importance that they get call themselves fashion-victims.”
Psychological elements affect our wants. For example, people mostly like to wear modern
and good design clothes in order to receive respect in the society.

With the discussion, on these two concepts of economics, it concluded that needs and
wants are separate forces, that compels actions for satisfaction. If needs are not met on
time, the survival of a person is at stake whereas wants are something which a person is
craving for, that does not challenge a person’s survival if not satisfied.

So, needs can be distinguished from wants on the basis of their level of importance. Hence,
the distinction is between what is required and what is desired.