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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.
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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. |
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Conclusion:
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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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