The willingness of an individual backed up with purchasing power at a given time is

Step 1: Analyze the question The question asks for the term that describes willingness to buy plus the ability to pay (purchasing power) at a given time.

Step 2: Explain the concepts

• Desire (want): A wish for something. It has no purchasing power behind it. Anyone can desire a Lamborghini, but that does not make it demand.
• Utility: The satisfaction a consumer gets from consuming a good or service.
• Demand: The quantity of a good a consumer is willing and able to buy at various prices over a period of time. It is usually shown as a schedule or curve.
• Effective demand: Desire for a good that is backed by the ability to pay (purchasing power), so the consumer actually buys it in the market. It is the demand that counts in the market.

Step 3: Work through the options

• A. Effective demand: Willingness plus purchasing power, at a given time. This matches the question.
• B. Demand: Close, but "demand" is defined generally as a relationship between price and quantity over a range of prices. The phrase "backed up with purchasing power" is the textbook wording for effective demand.
• C. Desire: No purchasing power is involved, so it is wrong.
• D. Utility: This is satisfaction, not buying power, so it is wrong.

Step 4: Answer The correct option is **A.

Exam tip: Remember the formula Effective demand = Desire + Ability to pay (purchasing power). When a JAMB question mentions "backed by purchasing power", think effective demand. If it only says "willing and able to buy at various prices", think demand.