The existence of human wants is the basis of all economic activities in a society. All desires, tastes and motives of human beings are called wants, in economics. Wants may arise due to elementary and psychological causes, social causes, customs and habits, advertisements, etc.
Generally wants and needs are used interchangeably. But there is a difference between the two.
- Need is something you have to have it without which you may not even survive.
Example: You need food for survival. Likewise you also need basic necessities of shelter and cloth.
- Want is something you would like to have. Things may not be needed but you wish to have.
Example: Car, ice cream, etc.