Distinguish between individual (household) demand schedule and market demand schedule.

Solution

An individual (household) demand schedule is a tabular statement which shows different quantities of a commodity that a consumer would demand at different prices. Market (or composite) demand for a commodity is the total demand at each price by all the consumers of that commodity in the market. Therefore, market demand schedule is the aggregate of individual demand schedules. By summing up individual demand schedules we get market demand schedule as shown in the following demand schedules. Let us suppose there are three households, namely, A, B and C in the potatoes market. Individual demand schedules and the resultant market demand schedule for potatoes are given in the table below.

	INDIVIDUAL DEMAND SCHEDULES			MARKET DEMAND SCHEDULE
Price Per kg (र)	Demand by Individual Households (kg)			Aggregate (Market) Demand (kg)
	A	B	C	(A + B + C)
1	6	11	13	30
2	5	9	12	26
3	4	7	11	22
4	3	5	10	18
5	2	3	9	14
6	1	1	8	10