Economics

1. A….

Individual Demand

The individual demand is the demand of one individual or firm. It represents the quantity of a good that a single consumer would buy at a specific price point at a specific point in time. While the term is somewhat vague, individual demand can be represented by the point of view of one person, a single family, or a single household.

Market Demand

Market demand provides the total quantity demanded by all consumers. In other words, it represents the aggregate of all individual demands. There are two basic types of market demand: primary and selective. Primary demand is the total demand for all of the brands that represent a given product or service, such as all phones or all high-end watches. Selective demand is the demand for one particular brand of product or service, such as the iPhone or a Michele watch. Market demand is an important economic marker because it reflects the competitiveness of a marketplace, a consumer’s willingness to buy certain products and the ability of a company to leverage itself in a competitive landscape. If market demand is low, it signals to a company that they should terminate a product or service, or restructure it so that it is more appealing to consumers.

Q&A - What factors affect the demand for a product?

supply and demand is a correlation between price and quantity. There are many factors that can affect demand or supply curve. It depends on what product you want to analyze, i.e: tax, substitution product, tax, government subsidy, furthermore things that relate to those products such as drought, productivity, etc. You should understand demand curve and supply curve separately, because it is easier and after that you can understand the equilibrium.

B.

Equilibrium Price and Quantity

We are looking for the equilibrium price and equilibrium quantity. The equilibrium price (or market-clearing price) is the price where the intentions of buyers and sellers match. It is the price where quantity...