Market Demand

   Market Demand 

Market demand is sum of individual demand.

In the above table shows the individual demand and market demand.Two individual:X and Y.When price 1 ,the demand of X is 6 and the demand of Y is 5 .Sum of individual demand:6 and 5 equal to 11.So, market demand is 11.similarly, at price 2, demand of X is 5 and the demand of Y is 4. Market demand=5+4=9; market demand is 9

At price 3, demand of X +demand of Y 

=4+3=7(market demand)

At price 4, Market demand=demand of X+demand of Y

=3+2=5

Graphical Explanation of market demand 

In graphically,market demand is horizontal sum of individual demand.At price 1 , market demand is horizontal sum of 4 and 6 equal to 11.

We know that price and demand is inversely related.When price increase, quantity demand also decreases creases.similarly market demand also decreases