The central purpose of economic activity is the production of goods and services to satisfy needs and wants
Economic activity means producing goods and services. Economies do this to satisfy needs — things essential for survival — and wants — things people desire beyond the basics.
Real World
Netflix produces streaming content (a service) to satisfy wants — nobody needs a true-crime documentary to survive, but 260 million subscribers reveal an enormous revealed want for it.
Exam Focus
Always define needs and wants separately before applying them; conflating the two in 'explain' questions is a common error that limits marks to AO1 only.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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