Final answer:
Market demands are defined by the needs and wants of consumers combined with their ability to pay for goods and services. While consumers distinguish between needs and wants, economists consider them equivalent in shaping demand. Other variables, such as income, tastes, and demographic factors, also influence demand.
Step-by-step explanation:
Market demands relate to needs and wants in that they are the driving forces behind the amount of a product consumers are willing and able to purchase at each price. Needs are essential for survival, such as food, clothing, and shelter, whereas wants are a means of expressing those needs in more specific terms. Demand incorporates both these aspects, as well as the ability to pay. A market demand is not simply about wanting a good or service; it requires that consumers have the means to fulfill that desire. This is why economists view needs and wants as the same for practical purposes when it comes to demand. Additionally, factors like tastes and preferences, income levels, prices of related goods, and population size or composition can also significantly impact demand.