Individual Demand

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Definition of Individual Demand:

Individual demand is the amount of a product an individual (or single buyer) is willing to purchase with his or her limited income at the prevailing set of relative prices over a specified period of time.

Detailed Explanation:

Have you ever been shopping and chose to purchase an item your friend did not purchase? Or, maybe you chose not to attend a show with your friends because it was too expensive. In each case the price is the same for you and your friends, so why did your behavior differ from them? One answer is that you have different individual demand curves. All of us have an individual demand for every good or service. The quantity demanded at each price is influenced by each person's circumstances. Personal tastes may be the reason why you did not purchase the item your friend purchased. Income also influences our individual demands. In the case of the show, your income was too low and you could not afford the ticket. The satisfaction gained from attending the show was not sufficient to spend your limited income.

Dig Deeper With These Free Lessons:

Demand – The Consumer's Perspective
Changes in Demand  ̶  When Consumer Tastes Change
Price Elasticity of Demand  ̶  How Consumers Respond to  Price Changes
Supply and Demand  ̶  Producers and Consumers Reach Agreement

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