What Is Market Demand?
Market demand is the aggregate of the individual demands for a commodity from purchasers in the marketplace. If more purchasers enter the marketplace and they have the capability to pay for commodities on sale, then the market demand at each cost price degree will increase.
In the previous section, we studied the preference of individual customers and derived the demand curve for it. However, there are many customers for a commodity in the marketplace. It is important to find out the market demand for the commodity.
The market demand for a commodity at a particular cost price is the total demand of all the customers taken together. The market demand for a commodity can be derived from the individual demand curves. It can also be derived from the individual demand curves graphical depiction by summing up the individual demand curves.
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