Effective demand, individual demand, market demand
Understand the Problem
The question is asking for definitions or explanations of effective demand, individual demand, and market demand. This involves understanding how these concepts differ from each other and their roles in economics.
Answer
Effective demand is willingness and ability to buy. Individual demand is per person. Market demand is the sum of all individual demands.
Effective demand is the willingness and ability to purchase a product or service. Individual demand refers to the quantity an individual consumer is willing and able to buy at different prices. Market demand is the sum of all individual demands in a market.
Answer for screen readers
Effective demand is the willingness and ability to purchase a product or service. Individual demand refers to the quantity an individual consumer is willing and able to buy at different prices. Market demand is the sum of all individual demands in a market.
More Information
Effective demand emphasizes the necessity of both willingness and means to buy. Individual demand varies from consumer to consumer depending on preferences and circumstances, while market demand encompasses the entire consumer base's demand in a market.
Sources
- Demand | Ag Decision Maker - Iowa State University Extension - extension.iastate.edu
- Market demand as the sum of individual demand - Khan Academy - khanacademy.org
- Demand Curves: What Are They, Types, and Example - Investopedia - investopedia.com
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