Answer to Question #126336 in Economics for Bryan

Question

Analyse how an individual consumer's demand curve for a product is derived and consider how this may be linked to its market demand.

Answer 1

The demand curve is a graph illustrating the relationship between the price of a particular product or service and the amount of goods that a consumer can and wants to buy at a given price. It is a graphical representation of demand.

The total demand curve for all consumers is the resulting demand curves for each consumer individually. The demand curve itself may take the form of a curve, but sometimes a straight line.

The market demand curve is the sum of the individual demand curves that are added up by horizontally combining the individual demand curves of all consumers in the market .

It must be borne in mind that hundreds and thousands of consumers are operating in the market and the demand volume of each of them can be represented as a point.

The demand curve for each consumer has its own, that is, it differs from the demand curves of other consumers, because people are not the same. Some have a high income, while others have a low income. Some want coffee, while others want tea. To get the overall market curve, you need to calculate the total consumption of all consumers at each given price level.