Question

different between consumer demand and consumer's supply....

Answer 1

Demand, a chief economic principle, is the effective want for something and the willingness and ability to pay for it. A relative concept, demand is always attached to a certain price point at a particular point in time. Quantitative demand analysis provides useful guidance to companies and investors trying to determine their market strategy and the growth potential of a product. There are two basic types of demand: individual and market. While both principles overlap in many ways, the scope of individual demand is much narrower than market demand.

Individual Demand

The individual demand is the demand of one individual or firm. It represents the quantity of a good that a single consumer would buy at a specific price point at a specific point in time. While the term is somewhat vague, individual demand can be represented by the point of view of one person, a single family, or a single household.

Market Demand

Market demand provides the total quantity demanded by all consumers. In other words, it represents the aggregate of all individual demands. There are two basic types of market demand: primary and selective. Primary demand is the total demand for all of the brands that represent a given product or service, such as all phones or all high-end watches. Selective demand is the demand for one particular brand of product or service, such as the iPhone or a Michele watch. Market demand is an important economic marker because it reflects the competitiveness of a marketplace, a consumer’s willingness to buy certain products and the ability of a company to leverage itself in a competitive landscape. If market demand is low, it signals to a company that they should terminate a product or service, or restructure it so that it is more appealing to consumers.