Jerry has $50,000 in his savings account and the average new car price is $23,000. Does Jerry have a demand for a new car?
A)Yes, since Jerry can afford a new car.
B)Not necessarily. Jerry has the ability to buy a new car, but we don't know if he also has the willingness to buy a new car.
C)Yes, since Jerry's savings is more than double the average new car price.
D)Yes, since Jerry probably needs a new car.

Question

Quizplus · Accepted Answer

While Jerry has the ability to buy a new car with his savings, we don't know if he actually wants or needs a new car. Therefore, we cannot assume that he has a demand for a new car based solely on his financial ability to purchase one.

Jerry Has $50,000 in His Savings Account and the Average