Answer to Question #66470 in Microeconomics for reabetsoe

Question #66470

Explain the relationship between individual demand and market demand

Expert's answer

The market demand curve is made up of all the individual demand curves for a good. In general, the higher the price of an item, the less an individual consumer will buy. Microeconomics is concerned with smaller-scale individual consumer behavior. But since each consumer is different, one individual's behavior does not explain the entire market. Macroeconomics attempts to understand the total market in a broader sense.

Sources: http://smallbusiness.chron.com/relationship-between- individual-demand- curves-market-demand-curve- goods-20431.html

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