Question

Three main determinants of earning of an individual in the market

Answer 1

The market demand curve for a commodity is obtained by adding up the individual demand curves for all economic actors in the market.

Broadly, there are three kinds of factors that affect market demand:

The size of the market. ceteris paribus, a larger market means more demand, and a more outward market demand curve.

The various determinants of individual demand averaged across all economic actors in the market.

The distribution of each of the determinants of individual demand across all economic actors in the market.