What is demand? Do you what it is? Let me explain demand is defined as something that has a specific quality, something which is good in terms of quantity and quality that the consumers are willing to buy it over and over. In this article, we have to differentiate the main properties of individual demand and market demand.
The main difference between these two demands is. in individual demand describes the willingness of only a person to buy particular goods. While in market demand describes that all individuals in the market are willing to buy a particular service or something good in quantity and quality. Do you that main difference? Let’s see some special and important differences between individual demand and market demand.
What is demand?
This is the simplest way to define demand. Demand is the desire of the community and people in that commodity are willing to buy support the community in a sense to buy that service.
Difference between individual demand and market demand
let’s see the difference with the help of the examples: In individual market demand, only one individual is willing to buy good services. For example, one individual in a house is willing to buy wheat that is an example of individual demand.
while in market demand five families are willing to buy wheat in a ratio of 5kg, 6 kg, 7kg, 8kg, 9kg. The total market demand is 35kg is the simplest demand of market demand.
Content:
In this article, we discuss the definitions of individual demand and market demand, individual demand vs market demand, their examples, summary. Let’s continue.
Market
In individual demand means the demand of society for particular goods by a single consumer at different price levels or given period of time.
while in a market demand refers to all aggregate demands of the community at different Prices or different periods of time.
Rules to follow
It does not follow the rules in individual demand. It fluctuates and changes rapidly from time to time.
Market demand follows the rules of demand, it can only be successful if it follows the rule carefully that is the only way.
Shape of Curve
It is always steeper in individual demand because it depends on the potential of the individual.
However, market demand curves are always flat , because it follows the laws and causes it to the curve of the demand.
Demand curve:
the demand curve is a plotting graph by exploring the market demands and individual potentials of the commodity by considering prices, demands, consumers at a given period. Independent quantity plot on y-axis o in this difference price is an independent variable plot on the y axis of the graph and on the x-axis place a variable quantity. Demands are the variable quantity it fluctuates according to the needs of the commodity.
Individual demand:
Individual demand is the demand of the individual potential is willing to buy a particularly good service or goods over a period to buy every month, every week, or year. In simple words, it is the demand of the individual buyer.
Individual demand varies by personal taste and preferences. It also varies by the prices of the market of that particular goods or service.
Individual demand:
Individual demand is the demand of the individual potential is willing to buy a particularly good service or goods over a time to buy every month, every week, or year. In simple words, it is the demand of the individual buyer.
Individual demand varies by personal taste and preferences. It also varies by the prices of the market for that particular goods or service.
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Tabular representation:
Individual demand can be represented in a tabular form. It is the list of demands by the community related to the different price levels at a certain time.
Example:
It is the prices of apples per kg and the demands of the commodity. When prices per kg increase then the demands of the individual potential decrease.
Prices in rupees individual demands
100 6
120 5
130 4
200 1
Individual demand curve:
The individual demand curve is used to represent the behavior of individuals when the prices of particular goods change in time. when the prices are high the individual demands become less. When prices are low the demands of the individual are increasing. The individual demand curve is always steeper.
Market demand:
Market demand refers to the sum of all individual components is that the aggregate of how many particular sources are demanded by the individual in a period.
Tabular representations of market demand
in market demand how much demands are used by the individual; it is represented in tabular representations. In which how much demands of service of the individual consumer are willing to buy it in different periods or in different prices levels.
For example:
The prices of wheat are changed according to it individual demand of the consumers’ changes. When the price is high the demands of individuals become less. When the prices are low the demands of the individual consumers become high. The sum of all the individual’s demands at different price levels is called a market demand.
Demand curve:
The market demand curve represents the sum of all individual demand curves. Prices and individual demands are inverse related to each other. One is increased other goes to decrease. Market demands follow the laws of demand. When the demands of something are high is always produces a specific product to increase the prices to gain profits. There is no doubt the individual demand increase but the sum of all demands go to increase the sum.
Special differences between individual demand and market demands:
- Individual demand is the willingness of a single individual to buy the goods. While in market demands are the sum of all individual are willing to buy it.
- Individual demand is just the component of market demand. While market demands are the sum of all individual demands
- Individual demands curve is always steeper depends on the prices of the goods. While the demand curve of market demand is always flattering due to the sum of individual demand.
- Market demand follows the rules of demand. While individual demands do not regularly follow the rules or laws of demands it depends on the consumers’ taste and preferences.
- The market is the relationship between all individual consumers with the quantity needs. while individual demands are the relationship between consumer potential and the prices of the goods.
Affecting factors to the market demand and the individual demand:
There Are so many factors that affect these two demands. It will increase either market demands or individual demands.
Prices:
The prices of anything harm individual and market demands. when the prices of something increase the demands always reduce. When the prices are low the demands eventually increase. Prices are the inverse effects on demands.
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source of consumer:
Consumer source has a different effect on individual demand and market demand. When the consumer income is handsome it will increase the demands.
Consumer taste:
Individual demand and market demand are always affecting by the taste or preference of consumers. When something is according to consumer preference it will increase the individuals and market needs.
Expectations
Consumer expectations about the quality of products, prices of the product also directly affect the demands of individual and market demand. So the prices are fall and reduced.
Promotion:
Worldwide companies advertise their product through social media platforms, they advertising through electronic media, bloggers, by add on the channel it will play an important role in advertising the product. The more aggressive the advertisement the more increase the demands of the goods.
These factors affect both individual demand and market demand. Some factors affect only market demands.
Population
When there is an increase in the population in an area it will defiantly increase the demands. when the population increases consumers, the increase is willing to buy specific goods. The increase in market demands also depends upon the type of individual man, women, children or old persons. Sex, gender also affect the market demands.
Distribution
When the source of income is distributed among the people unevenly it will affect the market demand in a sense rich will become richer and the demands only increase in rich and lower in the poor class. even distribution increases the market demands and unevenly decreases it.
Seasonal affect
Climatic changes also affect the demands of markets. For example, the demands of air cooler, Fridge, AC, and ice-cream, cold drinks are reduced in winter than the demands in summer.
Conclusion
In this article, we see the clear difference between individual demand and market demands. Some factors support individual demand and market demand. Individual demands are not influenced by all the factors of market demands. Individual demand of the market is not the same as market demand.