Respuesta :
Understanding demand important to understand how societies answer the basic WHAT, HOW, and FOR WHOM questions because it helps them in making careful economic choices about the way they use resources.
Explanation:
The problem that is faced by the society is making decisions regarding the utilization of resources. Resources are very scarce and hence they must be utilized efficiently. For the effective utilization of available resources there must be three important question that should be answered such as What, When and For Whom?
It is very important to decide firstly, What products to produce. It is based on the demand that exists for a particular product. Producing a product without any demand will be waste of resources. Then it should be decided that When to produce and to decide who will use the products and for whom they should be distributed.
Understanding demand is important to understand regarding how societies answer basic questions like:
- WHAT
- HOW
- FOR WHOM
The problem that is faced by societies is:
- Making decisions regarding the utilization of resources.
- The efficient utilization of the scarce resource.
- The companies decide the products to produce based on the demand of the customers.
- Analyzing the market for the prevailing demand of the product.
To know more about the answer to the question of WHAT, HOW, and FOR WHOM, refer to the link below:
https://brainly.com/question/3331860
