Distinguish between Individuals Demand and Market Demand. Name the factors affecting demand for a good by an individual.
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Individuals demand refers to the quantity of a good, single consumer is willing to buy, at a price during a period of time while market demand refers to the quantity of a good, all the consumers taken together are willing to buy at a price during a period of time.
Factors:
(i) Own price of the good
(ii) Prices of the related goods.
(iii) Income of the consumer,
(iv) Tastes of consumer.
Individual Demand: It refers to the quantities of a particular commodity that a consumer is willing to purchase at different possible prices.
Market Demand: It refers to the aggregate (total) demand for all the consumers in the market at different prices.
The factors affecting demand for a commodity are as follows:
(i) Price of a given commodity
(ii) Price of other goods
(iii) Income of the consumer
(iv) Consumer's tastes and preferences
(v) Expectation of change in the price in future.
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