Question

diffrence between indivisual demand and market demand in points and easy language

Answer 1

Market demand describes the quantity of a particular good or service that all consumers in a market are willing and able to buy. In other words, it represents the sum of all individual demands for a particular good or service. ...

Answer 2

hey mate here is the answer

Individal Demand

Individual demand describes the ability and willingness of a single individual to buy a specific good or service. As indicated above, this largely depends on the price of the product as well as individual preferences. In most cases (i.e. for normal goods) demand increases as the price of a good or service decreases. This relationship between price and quantity can be illustrated using a demand curve.

To give an example, let’s look at the two diagrams below. They illustrate the demand curves for ice cream of two individuals – Tom and Jerry. Tom’s demand curve (DT) shows us how much ice cream he is willing and able to buy at different prices, whereas Jerry’s curve (DJ) represents his individual willingness and ability to buy ice cream.

Market Demand

Market demand describes the quantity of a particular good or service that all consumers in a market are willing and able to buy. In other words, it represents the sum of all individual demands for a particular good or service. Again, this is a lot easier to understand if we look at the corresponding demand curve.

If we revisit our example from above, we have two individual demand curves. The first one represents Tom’s individual demand while the second one describes Jerry’s demand. Hence, to calculate market demand for ice cream in this example, all we have to do is horizontally sum the two individual demand curves. This results in the following market demand curve (DM):