Livestock Economics, Marketing and Business Management

CLASSIFICATION OF WANTS

• Wants can be classified as
  • Necessaries
  • Comforts
  • Luxuries

Necessaries

• Necessaries are goods that are essential for human existence and to maintain our efficiency.
• Goods, which are used for our existence, are called necessaries for existence and goods that we use to improve our efficiency are called necessaries for efficiency.
• E.g. Nutritive food. Goods, which are used out of habit or long established customs and conventions, are called as conventional necessaries. Eg. Tea, Coffee.

Comfort

• Comforts are goods that lead to easy living and make our life pleasant.
• They also improve our efficiency, but improvement in efficiency is not in a proportion to the money spending on them .eg. Car, Refrigerator, etc.

Luxuries

• Luxuries are goods and services, which are generally non- essential and very expensive.
• They do not improve the efficiency of the people.
• It is just meant for increasing the prestige of a person. Eg. Diamond ornaments.