The concept of demand in a market. Individual and market demand

Demand is one of the main indicators of market relations. It is studied by all manufacturers and sellers of products and services. But this indicator affects not only these areas of activity. Many factors influence the economy's fluctuations, not only for individual countries, but for the entire world community. Let's consider in more details individual and market demand.

To begin with, let us analyze the very concept of demand. This is the desire of consumers, as well as their ability to purchase a certain number of products or services. Their cost should coincide with the capabilities of potential buyers. Also important is the selling time, which should coincide with the desire to purchase this product.

Demand is divided into two categories:

1. Individual is the total quantity of a product that one buyer wishes to purchase. At the same time, the price should justify the expectation of the consumer and the goods must be provided at a certain time. This is the position of one individual, which in the conditions of the market is not the main indicator.

The presence of competition implies a greater number of buyers on the market of this product.

Demand is caused by the needs of people in certain values. Man always strives to make his life better. Everyone has their own desires and possibilities. Various factors influence their formation. They determine the conditions for the existence of the person, people, his surroundings, and the whole society to which he belongs.

But from an economic point of view, the main factor is the solvency factor. Individual and market demand is the desire and ability of the buyer to purchase this product. The magnitude of demand is the entire volume of products that the consumer can purchase at the declared price and at the moment.

A product with a lower price is realized faster and in larger volumes. But high demand leads to higher prices. Lack of excitement and interest of buyers to the product leads to a decrease in value. Such an inverse relationship between the volume of output and its price is the law of demand.

Individual and market demand is determined for each commodity price. But if the first indicator is the desires and possibilities of one buyer, then the second one has a more voluminous meaning.

2. Market demand is a certain quantity of a product that a certain number of buyers will acquire at a given price and at a given moment. That is, it is individual demand multiplied by the number of consumers whose opportunities and needs are met by this product.

If we consider graphically the dependence of demand on the value of the commodity, the curve will have a step-like appearance. Each consumer has a threshold of sensitivity. Gradual reduction of the price will not cause agitation and a sharp increase in demand. But if the cost of the goods becomes lower by a considerable amount, this will cause the increased interest of buyers.

But for individual and market demand, in addition to the cost, have other influences. Among the main distinguish the following:

1. Income of buyers, which determine its budget.

2. The cost of goods that can replace this product.

3. Preferences of buyers who can change under the influence of certain events.

4. The number of consumers or the size of the market.

5. Customer expectations.

Therefore, these factors can make the impact of value not significant.

Consumer preferences can significantly affect the demand indicator. It is the influence of fashion, national traditions, position in society and technological progress.

Demand depends on many factors. Individual indicator is considered in smaller economic formations. In the economic sphere, within the framework of enterprises, companies and other large structures, market demand is considered.