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Distinguish between individual's demand and market demand. Name the factors affecting demand for a good by an individual. |
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Answer» SOLUTION :Individual demand refers to the quantity of a commodity that a consumer is willing and able to buy, at different possible prices during a specific period of time.On the other hand, Market Demand refers to the quantity of a commodity that all consumers are willing and able to buy, at each possible PRICE during a specific period of time. Market demand is horizontal SUMMATION of all the individual demands. Factors affecting demand for a good by an individual are :- (i) Price of related goods. (ii) Income of the consumer. (iii) Tastes and Preferences. (iv) Own price of the commodity. |
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