2.1.4—Individual and market demand

Individual demand is one buyer’s schedule; market demand is the horizontal sum of quantities demanded by all buyers at each price.

Market demand changes when buyers enter or leave and reflects differences in incomes, tastes and substitution options.

Add quantities at the same price, not prices across buyers.

At $10, three consumers demand 2, 1 and 4 units, so market demand is 7 units.

Market demand is not the average of individual demand curves.