MICROECONOMIA

Derivation of the market demand curve
Section 4 of Chapter 4, we showed how an individual demand curve can be derived from indifference map of a consumer. This demand curve, of course, the relationship between the quantity demanded of goods by the consumer (per unit time) and the price of the property, when the monetary income and the price of other goods remain constant. The form and level of demand curve inindividu8al obviously depend on the client's taste, as in high or refected s indifference map. Also depend on the income level the client's money and the price level of the other good.
The market demand curve for a product is simply the horizontal summation of individual demand curves of the consumers in the market. Put another way, to find the market quantity demanded at each price, add iindividual quantities demanded at that price. For example, Table 5.1 shows the individual demand curves for four cnsumers. If these four consumers understand the whole market, the market demand curve is achieved in the last column of Table 5.1. Figure 5.1 shows the individual demand curves based on these data, and the market demand curve result.
Table 5.1 Individual and market demand schedules.
commodity
amount
(Per unit of time)
1 .- In Chapter 2, which is atable demand curve showing the quantity demanded at various prices.