What is demand
What is market dmand and what is individual demand. explain both of these for 5 marker question with there possible types
Answers
Answer:
Demand is the amount of goods that people want to buy at a given price. Prices go up when supply is less, and demand is more. It follows the law of demand where as price increases, demand decreases and vice versa showing an inverse relationship between quantity demanded and price.
Explanation:
The market demand for a good describes the quantity demanded at every given price for the entire market. Remember that the entire market is made up of individual buyers with their own demand curves. This means that the market demand is the sum of all of the individual buyer's demand curve.
Answer:
Major cities have a significant number of parking spaces on public streets. In congested areas, such as downtowns, street parking is usually priced and limited in duration. Cities meter downtown parking for many reasons, including to raise revenue, ensure the frequent turnover of customers for local merchants, and ensure the availability of parking spot for those looking for parking. But how much should a city charge for parking in order to raise revenue or ensure available spots? The answer depends on understanding the demand for parking.
Demand is a natural next topic after the consumer choice problem of maximizing utility among competing bundles of goods, which we studied in Module 4. We saw in Module 4 that the solution to the consumer choice problem gives us, among other things, the individual demand functions. These functions tell us how much the individual consumer will demand of each good in order to maximize utility for any set of prices and income. And by taking into account all of the individual demands, we can come up with an overall market demand for a good.