The difference between demand and wants is in the

Step 1: Analyze the question The question asks what separates demand from wants in Economics.

Step 2: Explain the concept

• Want: any desire for a good or service. It does not matter whether you can afford it. Wants are unlimited.
• Demand: a want that is backed by the ability (purchasing power) and willingness to pay. In economics, this is called effective demand.

So both involve desire. What turns a want into demand is the money to pay for it.

Step 3: Check each option

• A. Desire for the commodity: Both wants and demand involve desire, so this does not separate them.
• B. Significance of the commodity: This is about importance, which is not the deciding factor.
• C. Ability to pay for the commodity: Correct. Demand needs purchasing power, but a want does not.
• D. Economic value of the commodity: This relates to price or worth, not to the difference between the two ideas.

Example: Many Nigerian students want a brand-new car. Only those who have the money and are ready to pay for it actually demand it in the market.

Step 4: Answer The difference lies in the ability to pay for the commodity, which is option C.

Exam tip: Remember the formula Demand = Want + Ability to pay + Willingness to pay. If a question asks what makes a want become demand, think "money to back it up."