It is a tabular representation of quantities of a
commodity demanded or purchased at varying prices by all the consumers in the market,
at a given period of time. It is obtained by horizontal summation of demand of
all individual at various prices. This can be explained with the help of the
following market demand schedule.
Market Demand Schedule
|
Price of Sugar (RS)
|
Demand by Consumer A
|
Demand By Consumer B
|
Demand By Consumer C
|
Market Demand
(A + B + C)
|
|
25
|
10
|
11
|
12
|
33
|
|
26
|
9
|
10
|
11
|
30
|
|
27
|
8
|
9
|
10
|
27
|
|
28
|
7
|
8
|
9
|
24
|
|
29
|
6
|
7
|
8
|
21
|
|
30
|
5
|
6
|
7
|
18
|
In the above schedule there are three consumer of
sugar, namely A, B and C. It is clear from the table that market demand for
sugar is the total demand of all consumers of sugar at varying prices. For example,
at price Rs. 25/- per kg, market demand of sugar (33 kg) = demand of consumer A
(10 kg) + demand by B (11 kg.) + demand by C (12 kg. )
Market
demand varies inversely with the changes in price. Market demand is always
greater than individual demand. 