Final answer:
Demand is based on needs and wants. Cultural identity shapes an individual's wants and needs.
Step-by-step explanation:
Demand is fundamentally based on needs and wants. While a consumer may be able to differentiate between a need and a want, from an economist's perspective they are the same thing. Cultural identity can shape an individual's wants and needs, as it is influenced by factors such as family, upbringing, language, and geographical location.