Market Demand for a commodity

Market Demand for a commodity:

Definition and Explanation:

 

The market demand for a commodity is obtained by adding up the total quantity demanded at various by all the individuals over a specified period of the time in the market. It is described as the horizontal summation of the individuals demand for a commodity at various possible prices in market.

 

In a market, there are a number of buyers for a commodity at each price. In order to avoid a lengthy addition process, we assume here that there are only four buyers for a commodity who purchase different amounts of the commodity at each price.

Market Demand schedule:

 

The horizontal summation of individuals demand for a commodity will be the market demand for a commodity as is illustrated in the following schedule:

A market Demand schedule in a Fore consumer Market:

Price (TK)	Quantity Demanded	Quantity Demanded	Quantity Demanded	Quantity Demanded	Total Quantity Demanded Per Week (in Thousands)
	1st Buyer	2nd Buyer	3rd Buyer	4th Buyer
10 8 6 4 2	10 15 25 40 60	13 20 30 35 50	6 9 10 15 30	11 16 20 30 40	40 60 85 120 180

In the above schedule, the amount of commodity demanded by four buyers (which we assume constitute the entire market) differs for each price When the price of a commodity is TK. 10; the total quantity demanded is 40 thousand units per week. At price of TK. 2, the total quantity demanded increases to 180 thousand units.