derive individual and market demand curve
Answers
Answer:
To derive a market demand curve, simply add the quantities that each consumer buys at each price. The prices on the vertical axis do not change, but the quantities on the horizontal axis are the sums of the consumers' demand. ... Any factor that shifts any of the individual demand curves will shift the market demand curve
In Microeconomics,market demand curve is a mathematical extension of individual demand curve as summation or aggregation of all the individual demand constitute the total market demand.
Explanation:
The individual market demand reflects the quantity demanded of any particular good or service by a single consumer in the market at different price levels.Now,if we are able to count and add up the quantity demanded of a particular good/service by all the individual consumers in the market at different price level,we will obtain the market demand for that particular good/service for respective price levels.Therefore,graphically,summation or aggregation of the quantity demanded of any particular good or service by all the individual consumers in the individual demand curve at each respective price level would provide the total market demand at those price levels and market demand can be drawn accordingly.