In economics, it is believed that consumers have unlimited wants, but limited resources, where wants are everything that a consumer would purchase that would bring them increased utility. Within these wants are goods and services that the consumer needs in order to survive and those that are only a luxury, which the consumer does not need, but which will make the consumer happier. When making the decisions about which goods and services to purchase, the wants that consumers will satisfy first will be their needs. Then, if the consumer has income remaining after satisfying their needs, they can make the luxury purchases.

An example of this is a person who wants to purchase a house and a boat. The person can afford both individually, but not both of the goods because of the limited income the person has. Because housing is much more of a need than a boat, the consumer will purchase the house, not the boat.