I had a question in my quiz :What is effective demand?
I didn't know the question.
looking forward of hearing your answer.
Effective demand is the amount of goods or services that consumers are willing and able to purchase at a given price. This differs from demand in that demand is the amount of goods or services consumers are willing to buy at a given price. Effective demand ignores that group of consumers who are willing but unable to purchase at a given price. For example, many consumers may be willing to purchase a new home for $1 million. Unfortunately, only a small number are actually able to do this.