Difference Between Individual Demand and Market Demand
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Demand is referred to as the effective want for a certain commodity. This want has to be coupled with the willingness to pay for the good or service. Understanding the dynamics that control demand will enable producers and other businessmen to reap as much profit as possible. The dynamics of demand can be studied through market research. There are different perspectives from which economists view and define demand. There is individual demand and market demand. Individual demand and market demand overlap in more ways than one. However, generally, individual demand has a narrower scope in comparison to market demand. As the term suggests, individual demand has to do with the demand of a single person or firm. Here, the quantity of goods that a single consumer or firm will consume is considered. This is the quantity or number of goods and services that an individual or specific firm will purchase at a given price and time. The main difference between the individual demand and market demand therefore is the scope. The individual market demand is very specific and narrow.