Market demand function

What’s it: Market demand is the sum of individual demand in the market at a given price.

Economists define demand as our willingness and ability as consumers to buy goods or services for any given price combination.

The more consumers available in the market, the greater the demand. For aggregate figures, it is usually associated with the total population.

Therefore, a large population indicates a high demand potential.

By definition, demand has two keywords: willingness and ability to pay.

Market demand curve

Willingness shows consumers want goods. Ability means being supported by resources (having enough money). So, when we want an item and have the money to buy it, it will lead to demand. But, if we only have wants but no money, or we have money but don’t want the item, that doesn’t lead to demand.

What is the difference between market demand and individual demand?

Individual demand comes from a single consumer.

It can come from one individual, company, or other organization, depending on who is the c

how market demand is calculated by individual demand

how to calculate market demand and market supply