Individual and market demand

Syllabus: Describe the relationship between an individual consumer’s demand and market demand.

So we sum the individual demand curves horizontally

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Individual and market demand

RCBhese should not be difficult if you keep calm. Ask yourself three questions:

Has a 'ceteris paribus' factor (or a non-price determinant of demand other than the price of the good itself) changed? If the answer is yes, then there is a shift of the whole curve.
Will demand increase or decrease? This will determine if the shift is to the right or left - It can cause some people confusion if the demand curve is seen as shifting its position upwards or downwards - if the demand curve shifts downwards then demand has gone up (increased). Say what???? Yes check it out on a diagram. Therefore you need to think shift right (increase) and shift left (decrease) - with one exception and that is to do with supply and tax (more later).
If the price has changed, will there be an extension (increase) or contraction (decrease) of demand?hese should not be difficult if you keep calm. Ask yourself three questions:
Has a 'ceteris paribus' factor (or a non-price determinant of demand other than the price of the good itself) changed? If the answer is yes, then there is a shift of the whole curve.
Will demand increase or decrease? This will determine if the shift is to the right or left - It can cause some people confusion if the demand curve is seen as shifting its position upwards or downwards - if the demand curve shifts downwards then demand has gone up (increased). Say what???? Yes check it out on a diagram. Therefore you need to think shift right (increase) and shift left (decrease) - with one exception and that is to do with supply and tax (more later).
If the price has changed, will there be an extension (increase) or contraction (decrease) of demand?Just to be very clear - while the following focuses on what determines the position of the demand curve on the graph in IB answers never use a demand curve on its own a graph showing the demand curve shifting position without the supply curve is meaningless you need both to say what happens to proce and quantity and therefore make conclusions.Just to be very clear - while the following focuses on what determines the position of the demand curve on the graph in IB answers never use a demand curve on its own a graph showing the demand curve shifting position without the supply curve is meaningless you need both to say what happens to proce and quantity and therefore make conclusions.Just to be very clear - while the following focuses on what determines the position of the demand curve on the graph in IB answers never use a demand curve on its own a graph showing the demand curve shifting position without the supply curve is meaningless you need both to say what happens to proce and quantity and therefore make conclusions.Just to be very clear - while the following focuses on what determines the position of the demand curve on the graph in IB answers never use a demand curve on its own a graph showing the demand curve shifting position without the supply curve is meaningless you need both to say what happens to proce and quantity and therefore make conclusions.Just to be very clear - while the following focuses on what determines the position of the demand curve on the graph in IB answers never use a demand curve on its own a graph showing the demand curve shifting position without the supply curve is meaningless you need both to say what happens to proce and quantity and therefore make conclusions.

Microeconomics

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Individual and market demand