The following points highlight the two main features of the market demand. The features are: 1. Income Distribution 2. Population Distribution. Feature # 1. Income Distribution: Even if a country's national or per capita income remains constant, a change in the pattern of income distribution may lead to a change in the pattern of demand. There is likely to be [...]
In this article we will discuss about the aggregation problem of market demand, explained with the help of a diagram. The aggregation of individual demand curves for a good to obtain its market demand curve by means of horizontal summation of the individual curves would pose no problems if the individual demand curves are independent. But, if these curves are [...]
In this article we will discuss about the market demand for a variable input under monopoly and imperfect competition, explained with the help of a suitable demand curve. If a group of monopolists producing different outputs use a particular variable input, then in order to obtain the market demand for the input, we have to simply sum up the individual [...]