Business Economics · Ch 2 — Demand Analysis
Individual Demand and Market Demand
Individual Demand and Market Demand
A demand schedule is a table showing the different quantities of a commodity a buyer will purchase at different prices, other things remaining constant. It comes in two forms.
An individual demand schedule relates to a single consumer. The following schedule shows how much one buyer, Ravi, demands of a good at each price per week:
| Price (₹ per unit) | Ravi's quantity demanded (units) |
|---|---|
| 10 | 1 |
| 8 | 2 |
| 6 | 4 |
| 4 | 7 |
A market demand schedule shows the total quantity all buyers in the market demand at each price. It is obtained by horizontally adding (summing across) the quantities every individual buyer demands at each separate price. Suppose the market has just two buyers, Ravi and Sita:
| Price (₹) | Ravi | Sita | Market demand (Ravi + Sita) |
|---|---|---|---|
| 10 | 1 | 2 | 3 |
| 8 | 2 | 4 | 6 |
| 6 | 4 | 7 | 11 |
| 4 | 7 | 11 | 18 |
The quantity of a commodity a single consumer is willing to buy at various prices during …
The total quantity of a commodity all buyers in the market are willing to buy at each price — the horizontal sum of al …
Adding the quantities demanded by every individual buyer at each given price to arrive a …