The major difference in both terms is that Individual demand refers to the quantity demanded by a single consumer whereas Market demand refers to the quantity demanded by all consumers in the market.
To know the difference between these two, we must clear the meaning of these terms:
Meaning of Individual Demand: –
It refers to the demand by an individual or firm. Individual demand refers to the quantity demanded by a single consumer or firm at a specific price in a given period of time.
Meaning of Market Demand:-
It refers to the demand by all the individuals or the firms. Market demand refers to the quantity demanded by all the consumers or firms at a specific price in a given period of time.
Chart of Difference:
Basis of Difference |
Individual Demand | Market Demand |
|
Meaning |
It refers to the quantity demanded of a commodity by a single firm or consumer. | It refers to the quantity demanded of a commodity by all the consumers or the firms in the market. |
| Shown by | Individual Demand is shown by the Individual demand schedule and individual demand curve. | Market Demand is shown by the market demand schedule and market demand curve. |
|
Inter-Relationship |
Individual demand is a component of Market demand. | It is the aggregation of individual demands. |
| Demand Curve | The individual demand curve is relatively steeper. | The market demand curve is relatively flatter. |
| Scope | It has a narrower scope as it is related to the tastes and preferences of a consumer only. | It has a broader scope as it is related to the tastes and preferences of all the consumers. |
|
Represents |
It represents different quantities of a commodity preferred by an individual at different prices in the market. | It represents different quantities of a commodity preferred by all consumers at different prices in the market. |
Download the chart: –
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Conclusion:
Thus, individual demand constitutes market demand. Both terms are components of demand. It refers to the different quantities of a commodity demanded at different prices in the market.
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